Aug. 7 at 11:28 PM
$UWMC - Hello friends. I’d lie if I said I didn’t sell off 10k+ shares this morning to play more liquid names. I still park my cash here & buy every month it’s in the
$4S or
$3S…Especially via cash secured puts & gain more cash via covered calls. However, you & I both know that this won’t move until we start to see rate cuts. Even then, the broader overall economic picture may keep it in the
$4S (maybe
$5S) for another year or two. Fact is that if Trump would’ve just come in & done NOTHING then we’d probably be at
$6 or
$7…Hell, maybe even
$9+ like last August. But, he had to come in & be a crazy ass MOFO creating chaos & uncertainty everywhere. This caused the FED pause on the rate cuts. Which in turn led to our UWMC stagnation. With unemployment rising, inflation rising, and UWMC keeping more of its own loans in house with servicing…We may be stuck for awhile. Rate cuts or not. As the consumers start to take out more HELOCs & equity loans we will see a slow creep to more defaults.
