American Capital Agency (AGNC) is a real estate investment trust (REIT), or, more precisely, a mortgage real estate investment trust (MREIT) that invests in mortgages backed by government-sponsored enterprises like Fannie Mae or Freddie Mac. In the company’s most recent earnings conference call, CEO Gary Kain announced that the company had begun purchasing common stock of fellow MREITs at a significant discount to book value. While the move sparked controversy on the call, and within the REIT community, it could ultimately pay off handsomely for AGNC investors who currently enjoy an 11.9% dividend yield.
Global stock markets stabilized last week with the Dow Jones up 0.61% and the S&P 500 rising 0.81%. The MCSI Emerging Markets Index also recovered after a sharp sell-off by ending the week up 1.41%. Your Bull Market Alert positions were considerably more volatile -- fortunately, mostly to the upside. Last week's recommendations Thermo Fisher Scientific, Inc. (TMO) jumped 4.10% and Google, Inc. (GOOG) rose 3.88%. Long-time holding Bank of Ireland (IRE) added 3.71%
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