Outlook for Fannie Mae

Regarding the outlook for Fannie Mae, I would suggest that the market is looking out six to nine months from now and seeing higher interest rates, a tighter money supply and much slower home growth. That is the reason for the low P/E. The p/e you see now is a trailing P/E not a forward P/E, and the rosy picture of continued growth has to stop sometime and many feel that time is near.

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