Is Fannie Mae, Freddie Mac Stock An Investment Or A Gamble?

Shares of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) are well off their summer highs, though it’s not clear if that’s because shareholders are losing confidence that the courts will eventually rule in their favor or if many of them have decided they’d rather put their money to use somewhere else as the cases grind on. But unlike most stocks, a hard-to-explain dip in prices doesn’t really change the logic for or against investing.

Matthew Frankel at The Motley...