MORT - Selling An 8% Dividend Yielder

• The rally in the mortgage REIT was incredible. It lived up to everything we projected and then delivered a little bit more on top. AGNC delivered 39% in 10 months.
• With such a large rally in the sector, and in the market overall, there are fewer opportunities. Investors should be willing to take a more defensive stance.
• During the pandemic, we were overwhelmingly bullish. Low prices created enormous upside. Today, the majority of the upside is priced in.
• Many investors today are still flocking to ideas for "huge upside." It’s a dangerous idea and many of them will most likely come away burned.
• We have a neutral outlook on AGNC. They look fairly valued around $17.10 to $17.15 (today’s price). We would still love to buy shares at $13.19.

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