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yesterday at 9:58 am
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Collin, Ciaoenrico, JodyC and 12 other people liked this
“I thought about this all weekend,” Cramer told Curry. “I do not want to say these things on TV. 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.” [I don't listen to Cramer, he's a tool; but a lot of other people do.] - Anthony Citrano
I'm really surprised at this advice. Does he actually think that the stock market is only going to go down for the next five years? That's the only reason I can think of for getting everything out now. Or am I missing something? - Kenton
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He has a point...if you NEED the money within the next 3-5 years, then you probably shouldn't have it in the market right now...then again you probably shouldn't have put the money in the market in the first place if that was your time horizon for needing it. - Alex "Maverick" Scoble
I agree with you Anthony but he's right about this. If you'll need the money, it's better to take the loss now because i believe it's likely to get far worse from here. - ·[▪_▪]·
Seriously, now? Buy high, sell low? - Mike Reynolds
Kenton, hate saying it, but yes, you're missing something. Stroll through my feed if you want a lot more of my personal thoughts on the matter. Also, Alex puts it well, above. And @Mike: on time frames that short, it's either sell low or sell lower. - Anthony Citrano
If you need this advice from Cramer you shouldn't have been in the market to begin with. Full disclosure: I know I don't belong in the market, it's a rich man's game. - Jason Wehmhoener
i wonder if a sizable portion of his followers are around retirement age. if yes, this might be pretty good advice. if most of his viewers are <50 this could be some poor advice. - MikeAmundsen
amend by last comment. expense for your kids' college years might also be an issue. - MikeAmundsen
Alex I think you're dead on. Too many people think that you can get rich quick in the markets even if you have no clue about what you are doing. I think it also goes hand-in-hand with Jason's comments. - Kenton
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The point was a need for those assets in the short term. If you're in the market for any period beyond the next 5-10 years you'd be crazy to cash out now. - Kevin Cearns
Invest in stocks for the long term (5+ years), and have cash on hand for short term - you could look on this as the oft recommended "emergency fund" of 3 - 6 months' cash. Makes sense to me. - Jason Kaneshiro
If you need the money within 5 years, it SHOULD NOT have been in stocks in the first place. Cramer's advice comes a bit belated. - Morton Fox
@Morton - yeah, but most people don't know that, sorta like with real estate. I can't tell you how many sheeple asked me why I wasn't buying real estate from 2003-2007... they simply couldn't understand. "they're not making any more real estate," they'd say. - Anthony Citrano
I'm not necessarily arguing against this particular piece of advice, but keep in mind that "Jim Cramer's accuracy in forecasting overall stock market behavior is just below average" (http://www.cxoadvisory.com/gur...) - Alan Cheslow
@Anthony - yep, long term trend is real estate barely keeps up with inflation. The past ten years were an anomaly. I think we're seeing the stock market changing as well, from the sure thing of the 90s to the long, horizontal slide of the 70s. - Jason Kaneshiro
He is crazy, how he could say something like it? Panic selling is not the best moment to sell IMHO - Luca Conti
Luca, like I said, he's a tool; but he *is* right - who is keeping money in the market if they need it short-term? Only idiots. - Anthony Citrano
You are right Anthony, but five years is not short terms in financial terms and I think that in this time all the market will recover this crisis - Luca Conti
The only cool thing about Cramer is he admits when he's wrong, which unfortunately seems to be the case a lot lately. I respect the guy and his past performance but you know what they say about past performance.... :) - Charlie Anzman
Luca - at this point, we will need a 50-60% rise in global markets to simply *break even*. You think we'll see that in the near term? I hope you're right, but as most of you know, I doubt it. - Anthony Citrano
Hmmm... I just looked at the history of the DOW. From 1935 to 1985 it went up fairly consistently about 5.2% per year. If it had continued that trend from 1985 until now, it would be around 4268. Does this mean the market has been overvalued for the last 23 years? - Alan Cheslow
the more i look at this the more irresponsible his comments seem. the media & uninformed bloggers have already made people panicky. this isn't helping. - Faboo Mama
@Alan. That's the theory. Starts with Michael Milken's junk bonds that financed leveraged buyouts out of thin air. Continues with prices paid even today for tech companies that have no hope of ever making a profit. - Mark VandenBerg
Faboo: a Harvard Economist is who keyed me into how bad the economy is. Everything I see in the Economist and Wall Street Journal backs him up. Where are YOU getting your optimism? Please provide sources. That seems to be irresponsible too if you can't provide sources that the economy is going to be just fine. Who? President Bush? Rrrrriiiigggghhhhttttt. - Robert Scoble
History shows the economy will be fine. This gloom and doom nonsense is really starting to sound like talking points. - Spencer Scott
I think people are missing the point... maybe you've HAD your money in stocks for a while and were planning on using the returns on the investment in the next few years... if that's the case he's suggesting you should get out while you have the chance. No one would be stupid enough to put money in and expect to have it grow in the short term at this point, I think. But if you're in it for the long term in a few months might be a good time to buy. - Lindsay Donaghe
Spencer: yeah, history always evens things out. If all hell breaks loose I'll just go sit on the beach in Half Moon Bay with a bottle of wine. :-) - Robert Scoble
it's all about horizons, people. near-term, things will stink (several years out). long term, it will sort out fine. imho, we've been running on fumes for *decades* (Reagan era) debt continued to rise w/ very little behind it. we don't produce *squat* anymore. commercial paper was the only thing keeping us going day-to-day. now that's flopped. this w/ hurt, but it will pass. - MikeAmundsen
cramer is a moron - Ryan
+1 Ryan - Jim Goldstein
@Faboo just be careful not to lump people together. There are informed media/bloggers and uninformed media/bloggers. Check track records, etc. - Anthony Citrano
keeping funds you may need within the next five years in cash has always been what you should do. 5 years is just not a long enough horizon to put it at risk. i stopped watching CNBC when i realized that it was as valuable to me as a financial professional as MTV. I listen to Bloomberg radio via their website during the day instead. - Mark Foundos
@Mark - exactly (and what I kept saying, too: short term dough shouldn't have been there in the first place.) - Anthony Citrano
Cramer has called 14 bottoms before this, don't believe this guy his performance sucks. - adolfo foronda
@Alan: the last 25 years saw the dawning and maturing of the information age--namely the internet--that revolutionized bellwether companies and created a whole new tier of wealth for many of us, perhaps many on this feed ;). That skewed the chart a bit to the positive side. My contention has been that the market was TOO positive on the halo effect of the internet and it caused a great deal of irrationality in wall street valuations. Trace how the dominoes have fallen and you can see that it goes [cont.] - grant
...to Reaganomics, deregulation in the 80s, Greenspan being too liberal with the rates for the wrong reasons, and of course greed. YMMV but that's my story and I'm stickin to it. - grant
