Jim Cramer: Get Your Money Out Of The Market!

[Rainsford]

I don't know, my theory of investing has always been that you don't lose money until you actually sell. If I don't need my money for the next 5-10 years, I would have to be some kind of moron to sell now rather than wait for the inevitable rebound in the market. And this goes nicely with my other theory of investing, don't put short term money in risky investments...didn't we learn that from the LAST market crash? Now it's true that if you really know what you're doing you can make some big money in the short term, but most people don't have any idea what they are doing.

This is getting ridiculous. Friends my age (I'm 25) are getting worried about the drop in value in their retirement accounts because they're being told they SHOULD care. It's true that the economy has some problems, but I'm not entirely convinced that assholes like Jim Cramer aren't feeding the flames.

 

[Chaotic42]

Originally posted by: Rainsford
I don't know, my theory of investing has always been that you don't lose money until you actually sell. If I don't need my money for the next 5-10 years, I would have to be some kind of moron to sell now rather than wait for the inevitable rebound in the market. And this goes nicely with my other theory of investing, don't put short term money in risky investments...didn't we learn that from the LAST market crash? Now it's true that if you really know what you're doing you can make some big money in the short term, but most people don't have any idea what they are doing.

This is getting ridiculous. Friends my age (I'm 25) are getting worried about the drop in value in their retirement accounts because they're being told they SHOULD care. It's true that the economy has some problems, but I'm not entirely convinced that assholes like Jim Cramer aren't feeding the flames.

Slow, quiet economics doesn't sell advertising. Sometimes I think that the market wouldn't go down if the media hadn't said that it would.

 

[RU482]

I think there is alot of baby boomer money in the market that probably should be in safer investments. The grey giant is starting to wake up and pull that money out towards those safer investments. While the market drops, awaiting a bottom they can;t predict.

At some point, there is going to be a rapid rally followed by another big dip.

The next few years are going to be very volitile, until the grey folks get tired of it an stick with safe investments. HA

 

[GroundMeat]

Something to ponder:

This year the best performing index has been Botswana and Ghana is not far behind. Think about how ridiculous that is.

*edit:
Media reports that the market is tanking 60% of the time and positive 30% of the time, when in reality its the other way around.

 

[Eeezee]

Originally posted by: Skoorb

Originally posted by: bamacre

Originally posted by: LegendKiller

Originally posted by: PC Surgeon

Originally posted by: LegendKiller

Originally posted by: conehead433

Originally posted by: DukeN
Well Cramer says sell. Means time to load up the truck.

QFT. I always look at Cramer as a contrarian indicator.

Exactly. Cramer is a fucking idiot. His picks suck, his logic sucks, over time, he's a loser.

He's nothing more than jerry springer ADDHD TV.

So you would keep the money in the market that you could use within the next five years?

I just put all of my money into it, every IRA I had sitting in MMF is in.

:Q Seriously?

Maybe he did, but look at the DOW it is on its knees and teetering. Every single time in history it's dropped like this it's had a slower, but much-faster-than-usual gain after and eventually gets going nicely, leaving the value it had pre-crash a distant memory. If you believe that it is going to recover, buying after it's been given two black eyes is the best way to do it.

How often do opportunites like this come along? Every decade or two? If a person "got out" 9+ months ago and buys in now, even if the market drops another 2k, they will end up making off like a bandit for their gains down the road.

This is the exact psychology behind a bubble. Value is higher than it should be and it will crash. With a crash, the opposite.

This. I'm starting my Roth IRA this year (I'm 23). At this rate, I won't be actually buying anything until I pay my taxes.

 

[SSSnail]

That proves it, Cramer is an idiot.

 

[First]

Originally posted by: PC Surgeon

Originally posted by: Evan Lieb
Bad advice, though Cramer isn't taken that seriously to begin with. If he honestly thinks the Dow could go another 20% lower, it still would be a bad idea to pull out and panic as if this is a guaranteed 5 year thing. 5 years is pulled from thin air, not like it couldn't be just 1 year or just 2 years, 5 is spurious. Though Cramer has been wrong before quite often (Stark Industries anyone? ).

I see. So you would keep your money in? When is the pullout time?

If you're a long-term investor, history is on your side and the current drop of 40% from last year's peak shows us that now (or very soon) is probably a good time to buy. I invested about 3K (my entire life savings at the time) at the very end of the bubble in 2001, heavily in tech (unfortunately I knew nothing about diversification then). I'm up about 10% on my equity investments over the last 7 years despite the current brutal and temporary market destruction simply because I bought during a significant lull. A month ago under still poor but much more normal market conditions I was up closer to 50% in those 7 years. A year ago this month, it was nearly 100%. So buying during market troughs can make a difference.

If you're looking to time the market to retire within the next few years, though, that's very difficult to predict, short-run always is. Best case, we have a full recovery by next summer, up to 13,000 on the Dow, and worst case we're still at 8500 by summer. My prediction; we're recovering sometime in 2009, maybe around 10,000 on the Dow by Q3 (my natural inclination is to say it'll be higher than that though), and start booming in 2010.

Some good buys include BOA, Banco de Brasil, Honda, and Vulcan.

 

[jackace]

I don't claim to be a financial expert by any means, but looking around at what people are saying and there seems to be only 2 things being said.

1) we are at or close to a bottom and it's the best time in 20+ years to buy.

2) we still have serious economic problems and could see more big problems in the financial sector and possibly big problems in other sectors due to the financial sector problems. The people taking this option are also saying an all out depression is still a possibility.


The problem is finance is based a lot of historical data and we just don't have much if any historical data for the types of markets we are seeing so it's anyone's guess how bad it can get or how soon it will turn around. My personal opinion (again not as an expert) is we are not out of this yet. Many of the smaller European countries are struggling badly and some emerging markets are being wiped out completely. Then you look at the truly pathetic economic measurements both here in the US and around the world and it makes it hard to see a large up swing any time soon.

 

[Capitalizt]

We may be near a short term bottom..but even through all of this pain, we have yet to see the retail panic that signals a TRUE bottom. When the market collapses 9-10% in a single day, that will be it.

 

[silverpig]

B-B-B-B-B-BOOOOOOYEAAAAAHHHHH!!!

He's entertaining.

 

[gevorg]

Originally posted by: silverpig
B-B-B-B-B-BOOOOOOYEAAAAAHHHHH!!!

He's entertaining.

Exactly!

Cramer is just an entertainer, not a investment adviser.

 

[Whoozyerdaddy]

LOL... Thanks Scoop!

 

[shira]

Originally posted by: ScottMac
It's a little late. If you take it out now, you're a guaranteed a loss.

If you leave it in, it's likely things'll bottom and head back up. It all depends on your horizon.

Um, any decrease in stock value IS a loss, whether you take your money out or not. If your stock was worth $100k three weeks ago and is worth $80k now, you really and truly have suffered a $20k loss. You can "invest" that $80k in the stock market (by leaving it where it is) or you can invest it somewhere else if you think you'll get superior returns (or suffer less loss) some other way.

The worth of your portfolio is its value today, not what it was before the market declined, and the future for growth (or further decline) starts today.

 

[Pliablemoose]

I forget who did it, but a financial guy did the exact opposite of what Cramer recommended and made some serious $$$

 

[smack Down]

Originally posted by: redly1
I think there is alot of baby boomer money in the market that probably should be in safer investments. The grey giant is starting to wake up and pull that money out towards those safer investments. While the market drops, awaiting a bottom they can;t predict.

At some point, there is going to be a rapid rally followed by another big dip.

The next few years are going to be very volitile, until the grey folks get tired of it an stick with safe investments. HA

That is my theory as well. You won't see DOW 14000 again for 15-20 years because of all the money baby boomer's are pulling out of the stock market.

 

[boomerang]

I think the market will open low and unlike recent history will slowly slink this morning. Bush will get on the tube and afterwords the sell-off will reach a frenzy until trading is suspended.

Trading was suspended temporarily in the Austrian market today (no word on whether it's resumed) and was suspended indefinitely in Russia.

The American public has zero confidence in this administration. There is nothing this administration can do at this point to turn this around. Someone big from the private sector has to get public, start making some statements with action following it up to get this thing started in the other direction. Warren Buffet or someone along his lines. This is not Buffet's style, so I don't know who it would be.

The American people are convinced that government is to blame for the mess we're in and does not have any trust in the Government 'fixing' it.

I hope my predictions in regards to the market today are wrong. Some days back I predicted the Dow at 7000. Right now I'm thinking that was too conservative.

 

[Genx87]

I wish i had more to invest. While my current investments are getting killed all they are doing is getting closer to the actual cost. In other words the investments I have been working on the past 8 years are nearing 0% appreciation. With the market in the tank this would be a good time to double up and wait for it come back. When it does Ill see nice gains. Unfortunately I dont have any damn cash!

 

[StageLeft]

At some point, there is going to be a rapid rally followed by another big dip.

Historically that's the case. It seems after big bears there is a fairly substantial rally followed by another dip down to around the floor, and then another rally and that second rally is the true one.

That proves it, Cramer is an idiot.

I don't see how it proves it since I believe when he said this the DOW may have actually been over 10k and now it's thrusting its way toward 8k when the markets open.

That is my theory as well. You won't see DOW 14000 again for 15-20 years because of all the money baby boomer's are pulling out of the stock market.

I disagree with that, we will see 14k again in less than 10 and I say that even if there is a terrible depression. Really, I think it will just be a few years tops because 14k was not an overblown market to begin with. It wasn't like nasdaq in early 2000. It's not going to take THAT long to recover. The loss of baby bommers is a problem, though; that was always going to happen and I don't know if the market had it priced in or not, the fact that baby boomers will continue to sell as they pull out. If so, perhaps those of us just starting will have chronically underperforming stocks that we can buy over the next three decades and when those boomers finally croak we'll see some growth. Course by then we should be in bonds, right?

I think the market will open low and unlike recent history will slowly slink this morning.

I think it's going to be a bloodbath, losing many hundreds in the first hour. After that it may stabilize, and then as always between 3 and 4 est today is when the real fireworks will go on, especially before a long weekend. Are the markets open on Monday? I agree with you on Bush, he is gasoline on a fire. Unless he introduces more policy, something he's not expected to do, he cannot say anything that will make anybody happier.

 

[boomerang]

Originally posted by: boomerang
I think the market will open low and unlike recent history will slowly slink this morning. Bush will get on the tube and afterwords the sell-off will reach a frenzy until trading is suspended.

Trading was suspended temporarily in the Austrian market today (no word on whether it's resumed) and was suspended indefinitely in Russia.

The American public has zero confidence in this administration. There is nothing this administration can do at this point to turn this around. Someone big from the private sector has to get public, start making some statements with action following it up to get this thing started in the other direction. Warren Buffet or someone along his lines. This is not Buffet's style, so I don't know who it would be.

The American people are convinced that government is to blame for the mess we're in and does not have any trust in the Government 'fixing' it.

I hope my predictions in regards to the market today are wrong. Some days back I predicted the Dow at 7000. Right now I'm thinking that was too conservative.

Well so much for my downer attitude this morning. I'm glad my predictions didn't turn out to be true. I hope the goings on in the market today means things are starting to settle down.

 

[NoStateofMind]

I think we are still a bit away from the bottom. Maybe another 1500 points.

 

[nageov3t]

Fox Business Network already has a commercial out :laugh:

http://www.youtube.com/watch?v=yca7nbhyMVY

 

[Vic]

Originally posted by: PC Surgeon
I think we are still a bit away from the bottom. Maybe another 1500 points.

Long term maybe, but I wouldn't be surprised if we're up on Monday.