Common Sense and The Perils of Predictions

Guest essay by Michael R. Smith, C.C.M. Forbes, “Absolute Return” column, April 21, 2008, page 246: Here’s another name you should own, Freddie Mac ($29 per share)…Freddie is cheap at 1.1 times book [value]. Less than five months later, Freddie Mac’s stock was worth 25¢ per share, a loss of 99%.  It has since recovered…