Jump to content

Jim Cramer advises investors to pull out...


Recommended Posts

of the market whatever money they may need during the next 5 years!

 

http://www.msnbc.msn.com/id/27045699/

 

“Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now.”

 

While the animated Cramer is known for telling investors the best prospects for earning money on the stock market, he’s now saying retreat is the best position in the face of some of the worst financial news in decades. The bank lending default crisis that put financial firms around the country on the brink of collapse could bring “as much as a 20 percent decrease in the stock market,” Cramer predicted.

Link to comment
Share on other sites

  • Replies 49
  • Created
  • Last Reply

Top Posters In This Topic

If you have $X in the market and you need $X within the next 5 years to pay some bill, pull out of the market.

 

No sh-- Sherlock. That's true in any market.

 

Markets fluctuate. If you keep your money in it long term, you'll be well off. If you need the money short-term, it shouldn't be in the market. If it is, don't come whining to daddy about it.

 

I am down some 25+% since last October's Dow high. Meh. I'd rather be up but I can live. And I'm still buying. I'm not retiring for 30 years so the hits now are not a huge deal.

Link to comment
Share on other sites

If you have $X in the market and you need $X within the next 5 years to pay some bill, pull out of the market.

 

No sh-- Sherlock. That's true in any market.

 

Markets fluctuate. If you keep your money in it long term, you'll be well off. If you need the money short-term, it shouldn't be in the market. If it is, don't come whining to daddy about it.

 

I am down some 25+% since last October's Dow high. Meh. I'd rather be up but I can live. And I'm still buying. I'm not retiring for 30 years so the hits now are not a huge deal.

 

You're exactly right. I'm 41 and had planned on retiring at 60. We'll see about how that pans out after this mess, but the bottom line is to hold steady.

 

My biggest challenge is getting my wife to understand the monumental shift that is taking place right now and getting her onboard with the long term lifestyle changes this will bring forth for all of us. As a Christian, I keep reminding myself of the serenity prayer, however the practical side of me says to prepare for the ugly side of human nature should this "This sucker go down" as our dimwitted President opined.

Link to comment
Share on other sites

When everyone starts crying "There's no end in sight"...the end's in sight.

 

There's a lot of cash now out of the market...gotta go somewhere eventually and it's likely destination?

 

Back into the market!

 

Also, that pretty bill passed last week is going to take a little while to make a difference. To date, no bad loans are off the street.

Link to comment
Share on other sites

But we're Americans! Instant results and immediate gratification is our birthright!

 

Was just listening to some talking head speculating that it takes about 6-9 months for a big cash injection to be reflected in the market. I'm no econ expert but the guy sounded British so I assume he's credible.

Link to comment
Share on other sites

Was just listening to some talking head speculating that it takes about 6-9 months for a big cash injection to be reflected in the market. I'm no econ expert but the guy sounded British so I assume he's credible.

 

Which market? The stock market...yeah, I'll buy that. The credit markets...I'd hope we'd see it reflected sooner, otherwise a LOT of companies are going to declare bankruptcy.

Link to comment
Share on other sites

Which market? The stock market...yeah, I'll buy that. The credit markets...I'd hope we'd see it reflected sooner, otherwise a LOT of companies are going to declare bankruptcy.

 

To put it in simplest terms, the credit markets are the offensive line, the equity market is the QB. The QB gets all the headlines, but won't do much if the OL is broken. Need to fix the OL first.

Link to comment
Share on other sites

To put it in simplest terms, the credit markets are the offensive line, the equity market is the QB. The QB gets all the headlines, but won't do much if the OL is broken. Need to fix the OL first.

 

 

So now it's the credit markets' fault JP botched the handoff to Lynch? You JP apologists will stop at nothing...

 

My question was specific to what the talking head was talking about: he wasn't saying an infusion of cash in to the credit markets wouldn't show effect for half a year?

Link to comment
Share on other sites

When everyone starts crying "There's no end in sight"...the end's in sight.

 

 

Not that I care much...if the market moves, I make money. Don't care which direction it moves in.

when I get calls from clients wanting to invest in sectors, that is usually the time to sell out....when clients call to sell out, that is usually the time to buy that sector...never fails

Link to comment
Share on other sites

I keep reminding myself of the serenity prayer, however the practical side of me says to prepare for the ugly side of human nature should this "This sucker go down" as our dimwitted President opined.

 

The serenity prayer is infinity practical in this situation for any eventuality. You do what you can (to protect yourself) and turn the rest over to god.

Link to comment
Share on other sites

So now it's the credit markets' fault JP botched the handoff to Lynch? You JP apologists will stop at nothing...

 

My question was specific to what the talking head was talking about: he wasn't saying an infusion of cash in to the credit markets wouldn't show effect for half a year?

 

He was talking about the stock market and noted specifically that the bailout plan needs to start going into affect V fast to ease the credit crunch.

Link to comment
Share on other sites

So now it's the credit markets' fault JP botched the handoff to Lynch? You JP apologists will stop at nothing...

 

Actually, it's JP's fault that the markets are tanking. Would never happen if Edwards was at the Fed.

Link to comment
Share on other sites

Was just listening to some talking head speculating that it takes about 6-9 months for a big cash injection to be reflected in the market. I'm no econ expert but the guy sounded British so I assume he's credible.

That's the typical timeline for monetary policy to show up in business activity levels. The intent of the rescue package is to a bit different, IMO. It will establish a market for distressed assets so investment and commercial banks can (a) stop liquidating/marking them down at fire sale prices, and (b) have liquid funds that can be redeployed to creditworthy borrowers.

 

Given how seized up credit markets are right now, the Treasury's efforts may accelerate that 6-9 month window.

Link to comment
Share on other sites

×
×
  • Create New...