TL;DR

Someone is bragging about big gains on Freddie Mac and Fannie Mae, but it’s a risky bet based on their potential release from government control. Treat investments like casinos? Buyer beware.

Story

“Tried to tell ya +441%” - that’s the boast. Someone claims to be up over 400% on Freddie Mac and Fannie Mae stock since the election, betting they’ll be released from government control. They’re bragging, showing off their gains, and mentioning Bill Ackman’s prediction of release by late 2026. But hold on. Let’s unpack this with a skeptical eye. Remember the housing crisis of 2008? These two giants, Freddie and Fannie, were at the heart of it, needing a massive government bailout. They’ve been under conservatorship ever since, meaning the government is essentially running the show to prevent another collapse. Betting on their release is a gamble. It depends on political decisions, market conditions, and a whole host of unpredictable factors. Like flipping a coin, hoping for heads ten times in a row. Sure, you might win big, but the odds are stacked against you. Plus, the poster admits this isn’t financial advice, they’re ‘just having fun at the casino during work.’ That should raise a red flag. Treating investments like casino games is a recipe for disaster. Remember, what goes up can come down, especially in the volatile world of finance. Don’t let flashy gains blind you to the underlying risks. Do your homework, understand what you’re investing in, and be prepared for the possibility of losses.

Advice

Don’t be swayed by ‘hot tips’ and social media brags. Research before you invest, and understand the risks involved. Past performance is not an indicator of future results, especially when it comes to companies like Freddie Mac and Fannie Mae with a history of government intervention.

Source

https://www.reddit.com/r/wallstreetbets/comments/1i1h2sx/tried_to_tell_ya_441/