Citigroup Analysts Have Been Maintaining A Buy Recommendation On Fannie

Although a few of us have long had a pretty good inkling about where the share prices of Fannie Mae (FNM) and Freddie Mac (FRE) were ultimately headed (hint: it rhymes with “Nero”), it seems that many of those who are supposed to know best never quite “got it.” Some, in fact, were totally clueless.

Of course, not every analyst covering the sector or investor allowed to buy the shares of the two government-sponsored enterprises got things spectacularly wrong, though the list of those who did seems pretty extensive.

Regardless, there are some individuals and firms who deserve extra special recognition for their complete lack of competence. I am referring, in particular, to the analytical team at Citigroup, which steadfastly maintained a “buy” recommendation on Fannie Mae’s shares over the course of the past year  (according to Bloomberg) — as they plunged by nearly 99 percent.

Let’s give these highly-paid “experts” a hand (or, maybe, if you are a customer, some other appendage?). (Hat tip to JJ.)

[Click on graph to enlarge.]

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Comment by Derrick D

2008-09-09 00:02:28

thanks for pointing this out michael. analysts are wrong most of the time, whether they are from big or small institutions.

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