American Capital Agency: Time To Give Up?

American Capital Agency (AGNC) has plummeted in 2013 in response to two major concerns; the fact that the Federal Reserve may slow or cease its mortgage asset purchases sometime this year and the fear that rising interest rates will crush portfolio holdings of the mortgage real estate investment trusts (mREITS). The most recent unwarranted selling was just last Friday (7/5/13) which resulted from another better than expected jobs number showing that the market added 195,000 jobs in June. That day, when AGNC was trading down 7.5% at $20.21, I came out with a call to buy the panic selling. Since then the stock is up over 10%, with the first bounce coming shortly after the release of the article. Still, despite the evidence I have laid out in multiple articles and despite the fact that closer examination of the jobs number revealed a still gloomy view of the economy, I am inundated with inquiries as to whether it is time to just give up on AGNC altogether. While I would argue that despite AGNC shedding 1/3 of its share price since April, if you truly believe the sector is still doomed, then you could.....read more