BXMT Crisis Became an Opportunity, as Hoped

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FILE - In this Feb. 6, 2020, file photo trader John Doyle works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Friday, Feb. 21. (AP Photo/Richard Drew, File)

Always keep track of weaknesses for opportunities.

On December 6, for example, we noted, Blackstone Mortgage Trust (BXMT) just took a bad hit. However, the crisis may soon become an opportunity. Down about 8%, short-selling hedge fund Muddy Waters is to blame.”

At the time, BXMT just plummeted from $22.09 to a low of about $19.96. As hoped, fear quickly turned into opportunity, with BXMT recovering to a high of $22.50.  While it’s not a sizable return, it’s just another example of why it pays to pay close attention to crises.

Even better, while we wait for further recovery in BXMT, we can collect its 11.64% yield.