PennyMac Mortgage Investment Trust: The Expensive American Dream Is An Opportunity (Archive)
Turning the American Dream’s housing bubble into a bearish opportunity on PMT.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- The "American Dream" has gotten expensive as housing affordability is at decadal lows and the mortgage market is seeing slowdown.
- My technical analysis framework based on the Flow, Location, and Trap strategy suggests that the PennyMac Mortgage Investment Trust is bound to fall and underperform the US S&P500 index.
- Fundamentally, a more hawkish Fed and decadal lows in housing affordability lead to weakness in the mortgage markets.
- Key fundamental drivers to watch include the US 30-year yields, Home Price Indices and the mortgage REIT's ROEs.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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