Jim Cramer Tells America To Get Out Of The Stock Market

Jim Cramer, host of CNBC’s “Mad Money” and dedicated yelling enthusiast is apparently no longer content to behave strangely on his own television program, so he’s taking the crazy to the Today Show.

In our latest episode, Cramer tearfully informs Ann Curry that the time has come for some of you who are dabbling in the stock market to make a hasty retreat. If you’re going to need access to your money in less than 5 years… sell! No matter what.

What Jim is trying to say, through the tears, is that if you’re planning on needing your money within 5 years — you shouldn’t be investing in individual stocks.

“I don’t care where stocks have been, I care where they’re going, and I don’t want people to get hurt in the market,” Cramer told Curry. “I’m worried about unemployment, I’m worried about purchases that you may need. I can’t have you at risk in the stock market.”

Jim Cramer Begs America To Abandon Hope [Gawker]

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  1. Aesteval says:

    …seriously? It’s long past time to jump ship if you’re going to jump ship.

    • Shark1998 says:

      @Aesteval: Don’t misunderstand his intent. I believe he means speculative investments which are much more risky. Keep your money safe in slow growing industry standard investments such as P&G, Wal-mart (yeah I know, but hey…they will still be around even in a depression), McDonalds, Gold, and Ford. They are huge companies/ industries that have the resources to survive and continue to grow and are “depression survivors”. Ford for instance is at a 20yr low, so I am acutally BUYING Ford and McD’s like mad with money that I can afford to lose/ not use.

      • Aesteval says:

        @alexawesome:

        I understand what you’re trying to say, but I’m going to have to stick with what I’ve already said. He’s a little late to the tea party. Stocks have dropped what, 4000 points over the last year or so? Anyone that still has their money tied up in that at this point is better off waiting it out and finding an alternative method to make their ends meet if they’re in that desperate of a situation. No one’s going to get anywhere by selling for a loss and the more frantic selling that goes on, the more panic that goes on, the more the value is going to drop.

        • bwcbwc says:

          @Aesteval: You’re assuming the market is somewhere near the bottom.

          There’s not really any evidence to support that yet. My optimistic projection is that the market will bottom out around the election, since the results of that will remove a lot of uncertainty about the next 4 years. My pessimistic projection is that whoever gets elected sends mixed and bad signals to the markets during the transition period, and things go to hell in a bucket. The key is to get banks lending again, and right now the biggest of them can’t because they’re already exceeding their required captitalization ratios.

          • bwcbwc says:

            @bwcbwc: Uhh, “capitalization ratios,” that is. Sorry to go all freudian on you.

          • Aesteval says:

            @bwcbwc: “You’re assuming the market is somewhere near the bottom.”

            No I’m not. I’m assuming that eventually someday the market will exceed the point that it’s at right now and you’ll be able to eventually trim your losses some more or come out ahead again. It has nothing to do with whether it’s actually at the bottom now or not, it’s about not taking a guaranteed loss.

        • alexawesome says:

          @Aesteval: I totally get what you’re saying, but I think we’re talking about two very different kinds of investors. People who are on sinking ships hoping desperately that at the last minute, those stocks will buoy need to sell now. I’m talking about stuff that likely will not recover and investments made by amateur investors. Beautifully, Cramer is just vague enough that his “specific” instructions can be applied to just about any thing, and interpreted in anyway. I think more to the point, I’m trying to get something useful out of something vague and fear-mongering. Let’s just say we’re more on the same page than off.

      • Corbin123 says:

        @Shark1998: be careful, there’s probably as good a chance that Ford will go out of business as there is that the stock price will double (or even go up significantly for that matter).

    • alexawesome says:

      @Aesteval: He’s not saying jump ship, he’s saying take the money you think you’ll reasonably need in the next five years. If you can afford to have your money tied up in the stock market and are secure at your job (don’t laugh, some people have relative job security, even in this market), then you probably don’t need to be worried about this and can let things sit.

      His point is absolutely bang on – if, in this lousy economy, it’s likely you’re going to need to pull out and sell stock at some point in the next five years (due to job loss, increased food prices, etc), do it NOW, not tomorrow – you’re likely to get a better return on your investment today than next year. In other words, you’re going to get more money now than you would later on when you need it more. Does that make sense?

      If you can afford to hold out, then of COURSE that’s going to mean better long term profits for you. But when it comes to having to scrimp and save to put food on the table, stocks are a joke. He’s making this statement to amateur investors who will likely be selling stock in the next five years anyway, due to the issues he mentions.

    • sirellyn says:

      @Aesteval:

      I wonder why people listen to Jim Cramer at all.

      • rowsdower says:

        @sirellyn: Well, that’s the thing, no “expert” is perfect. No one. AT ALL. Jim Cramer is right about as much as any money advisor, and I can garauntee you that the vast majority of people didn’t see such a huge icon as Bear Stearns going under and then bought at such a low price.

        And as for the people who “lost it all” on Bear Stearns, that’s there own fault. It sounds very harsh, but they invested thier own money and lost it. Jim Cramer didn’t invest thier money, he at very best gave them advice. It’s stupid anyway to have “it all” in a certain stock, you must diversify your portfolio and also have a safety net, but that’s beside my point. I watch Jim’s show every now and then, and know that he’s wrong sometimes and right sometimes, but as long as there is a discla9imer before his (or any other investment or money management show, for that matter) show, I’m not taking his word as gospel.

        • rowsdower says:

          @my spoon is too big: not sure how that 9 snuck in there, ha ha!

        • alexawesome says:

          @my spoon is too big: I think that’s a very sound point – you can shoot the messenger as much as you want, but at the end of the day, your money is your responsibility. To all of those people who think their time is better spent investing in shady propositions and then placing blame squarely on the salesperson, I have a bridge I’d like to talk to you all about (damn, I can’t use that joke anymore without the bridge to nowhere coming up).

  2. captainpicard says:

    My question is, should I still be putting money into my 401K? I put in 6%, which my company then matches 100%, then at the end of the year we get a 5% of our base salary profit sharing bonus in my 401K. Should I still be putting 6% of my income into 401K?

    • mike says:

      @captainpicard: I think regardless of how the market handles, it’s best to keep your 401K investments since you automatically double your money. You may want to change where your investment is going. Unless some bank offers you a 100% investment return, I’d continue to fund it at your max.

    • buckfutt says:

      @captainpicard: Unless you’re over 50, most likely. If you’re under 40, absolutely. You can’t touch that money until you’re 55 1/2 anyway, and unless you’re within (conservatively speaking) 10 years of that date, keep on doing what you’ve been doing. By the time you can withdraw it, all this stuff will be ancient history, and the funds your 401K money is buying right now will be the biggest gainers. Gotta buy low before you can sell high, and brother, today is a day to buy low.

    • BuddyGuyMontag says:

      @captainpicard: I would continue your 401K saving, but put it into the most conservative options you can. Remember, he said five years; most of us aren’t retiring for at least another 30.

      • bwcbwc says:

        @BuddyGuyMontag: Yeah, even if you’re over 50, you’re STILL not retiring for another 30.

        Keep investing in the 401(k) to at least get the company match. Unless they force you to put all your money in company stock or some similarly risky option. As mentioned earlier, put your investments in the most conservative possible options: T-Bonds, Euro Bonds, maybe Munis and some index funds.

    • Mr_D says:

      @captainpicard: Oh god, yes. The basic investment strategy is to buy low, sell high. It’s low right now. (and if it goes lower, buy more).

      If the economy collapses and you lose everything, money will be the least of your problems.

    • Ftp1423 says:

      @captainpicard: Absolutely, Put in your 6%, it is going to get match and regardless it is free money on the table. Mike is right, you may want to shift what that money does, but the mutual fund managers are already making adjustments to take your money out of financial institutions and into safer bonds and broad range groups.

    • alexawesome says:

      @captainpicard: The advice in this video applies to you. Are you going to need that money in the next five years? Are you likely to be downsized? If you have relative job security (even if you do, keep your portfolio/resume current and circulating – competition for your skill set is always good, regardless of the market), your better bet long term is to do as the other people have suggested, and keep putting money into that 401k plan (likewise, check out where it’s going, as mike mentioned).

      The issue is if you’re going to need some or all of that money in the next five years. If you can at all avoid touching it, DO – the market will inevitably bounce back, and when it does, you stand to make a chunk of money if you stay in now.

      Finally, I don’t know if any of the people here are more than armchair analysts. As such, it’s in your best interest to talk to an adviser. Since you have a 401k plan, it’s probably managed by a company like Vanguard, which has lots of information and helpful people around to give you sound financial advice. In layman’s terms. So that you can feel secure about the choices that you’re making, become more informed about where your money is going, and make educated decisions about what to do with it right now.

      Don’t do anything rash because you’ve bought into hysteria. That road always leads to remorse.

      • NotChoinski says:

        @captainpicard :

        Would you wait until that house you wanted to buy shot up another 25%? If you have the means, now is the time to be buying. Now is the time everything is cheap. If the stock market completeley disintergrates, well, society is over.

    • Necoras says:

      @captainpicard: Assuming you’re not retiring in <10 years then I’d have to say yes, yes, yes, yes yes yes yes yes yes. Oh, and yes. If you can afford it, jack up to 18% (legal max). Now is the BEST time to pay into your 401K. Move everything from stable stuff into stocks, because now is the low point. When things are high (2-3 years ago) THAT’s when you move stuff into stable funds that don’t lose their value. Buy in the bottom, sell at the peak. You’re on the way down. 5-10 years from now, stabilize it when people get stupid with their money and things are booming again.

    • iamlost26 says:

      @captainpicard: Let me get this straight… and I don’t know if I completely understand the whole 401k thing, so correct me if I’m wrong. If you put it in a 401k, you are exempt from income tax for that money, am I correct? So, if you DON’T put it in a 401k, you lose approximately 25% of it to federal taxes automatically. Doesn’t that mean, whether or not your employer matches it, as long as the market doesn’t go below 25% of what it was originally, you’re still making money? I think year-to-date we JUST hit the 25% mark for the Dow.

      • Bramble73 says:

        @iamlost26: It depends on the type of 401k. A regular 401k is tax-deferred. All the money you put in is pre-tax money, taken out of your paycheck before taxes are withheld. The initial investments and the growth are only taxed when you take the money out many years down the road.

        There are now Roth 401ks, which work a lot like Roth IRAs. The contributions come out of your taxed salary, but all the growth is completely tax-free.

  3. pezhore says:

    Wow, lets all listen to Cramer. Wasn’t he the one who said Bear Stearns was a solid company?

    • BuddyGuyMontag says:

      @pezhore: God, this is the new razorblades in apples story hoax. He said YOUR LIQUID MONEY WAS SAFE BECAUSE OF THE FDIC INSURANCE.

    • missdona says:

      @pezhore: Not to mention Wachovia, who one of his best friends was the CEO.

    • OletheaEurystheus says:

      @pezhore: Ok …. If YOU as a investor saw what they where showing you, you too would have thought it was a solid company.

      Lets be COMPLETELY clear here, Bear Stearns and other companies COMPLETELY LIED TO INVESTORS. What they where telling investors and what they themselves knew were completely two different things, and the likelihood Cramer knew that Stearns was cooking the books to show profit where there was none is very low.

      While you can certainly fault Cramer for many things, you cant fault him on that one.

    • mugsywwiii says:

      @pezhore:
      Bear Stearns would have been fine if it weren’t for an inaccurate rumor about their liquidity.

    • ironchef says:

      @pezhore: Bear Stearns the stock was bad…That was what Cramer actually said. The original question by the caller when Cramer answered that question was…should I leave money @ bear stearns (as in assets.) Big difference. Sorry you got it wrong.

  4. andyfvp says:

    Moron! Now that he is jumping off the bandwagon things must be bad. Here’s how the fallout is going to play out for “main street” according to this article ( [www.savingtoinvest.com] ): Banks worldwide, stung by $588 billion in write-downs related to toxic assets — especially mortgage-related securities — will further reduce the flow of credit, strangling growth. That will push house prices lower, forcing additional losses and making banks even more reluctant to lend. As the credit crisis worsens, businesses will find it almost impossible to raise prices. They will then be forced to close or start laying off employees, which will in turn reduce consumer demand and thus create a vicious downward economic spiral.

    My advice : Cash is king and perhaps it is time to invest in a cheap mattress for your moolah’s.

  5. TracyHamandEggs says:

    He just said on CNBC that the market is undervalued right now and approaching the bottom. PEs are all out of whack with the price, and with everyone down across the board thats usually a sign of an impending bounce.

    The Euro is dropping, Oil prices are way down, commodities are dropping like flies. This is a great time for consumers.

  6. What’s he talking about? The bailout saved the stock market from tanking so everything is perfect again.

  7. zentec says:

    If you’ve been investing with this guy all along, I see no reason not to doubt his word and not do as he says. Get out now, take your losses and go home.

    For the rest who try to invest for the long term, make rational picks based upon research, not what screaming fools on TV say or what helicopter flyin’ fools say you should do (which is to trade, trade, trade because they make money on commissions), this is just part of the deal.

    People need to listen to the words of Benjamin Graham or Peter Lynch, not this Jim Cramer idiot.

    • Robobagins says:

      @WickedKoala: exactly. Which is what I think most people miss. His show isn’t called SRS BZNS folks. It’s like Vegas, you go in for the fun and excitement and the hope you win big. If you come out and break even, cool. If not, well hope you had fun.

    • camas22 says:

      @zentec:

      exactly. this is the time when dollar-cost averaging should really boost the average 401k.

  8. rpm773 says:

    How long before CNBC divests itself of Jim Cramer’s services?

  9. nataku8_e30 says:

    Awesome, maybe this is finally the sign we need that the market will turn around. Admittedly my experience with Cramer is pretty limited, but the few times I have watched his show and then watched what happened to his picks in the next few months, he has been 100% wrong.

  10. Bahnburner says:

    If you have a 401k and 10 or more working years left and you’re contributing with an employer match, keep it up. Your fund will be able to buy more shares with less money, then when the oh noes! OMG11! dies down, the value of all those shares will go back up and you’ll look pretty smart. Look, Warren Buffet is buying like crazy now and Wells Fargo was going to pay way more than Citi was going to for Wachovia…that should be an indication…

  11. B says:

    If Jim Cramer says it’s time to get out, it’s time to get in! Fortunately I won’t need my money for 40 or so years.

  12. sir_eccles says:

    I think his basic point is that the stockmarket is not a short term investment whatever the economic climate.

    • Corporate_guy says:

      @sir_eccles: But that is common knowledge. As you move closer to the date you want to pull your money out(i.e. retire) you are supposed to move your money to safer investments. If you are still in the stock market 5 years before you need the money. You’ve already made a huge mistake.

  13. moore850 says:

    only a sucker would sell in a downturn.

    • Woofer00 says:

      @moore850: But only a moron would stick with a risky investment. It’ll be time to buy soon enough, but no one knows how low things will go. For investors who are feeling conservative, it’s time to hold your capital until the market bottoms out. For people who believe that the market is indeed at rock bottom, perhaps it is time to sell. Personally, I’d say it really depends on the risk you feel like taking.

    • citking says:

      @moore850: That’s not entirely true. Selling on a downslope isn’t bad so long as you invest again when the market starts climbing. Removing all of your assets and never re-investing them is a waste. Cutting off the bottom of the parabola is not a bad thing.

      • mariospants says:

        @citking: But that’s not what Cramer is saying. He’s saying “get the fuck out”. He’s a paid mouthpiece for the big traders anyway, so he’ll tell the mom and pop investors to get out and spend the money on cars, houses, big TVs or whatever it takes to get the economy rousing again. That way, he and his big city clients will experience a rousing stock erection thanks to the newly-available and devalued stocks they bought when the moms and pops sold. Then Cramer and his ilk will scream “BUY BUY BUY” again and the peons will ramp up those prices even further.

        Just follow the money, then you’ll see where the real action is.

  14. TracyHamandEggs says:

    Market is up nearly 400 since 2AM.

  15. TracyHamandEggs says:

    PM

  16. cmdrsass says:

    Stocks are on sale – it’s time to buy and hold.

  17. You Cannot Untoast says:

    Personally, I get all my advice from shouting heads on TV. THERE IS NO reason to actually do any research. These people do not have ulterior motives or anything.

    The only time my brain hurts is when they have multiple experts saying multiple things. I’ve developed a system, though: go with the prettiest one. If they’re all fugly, go with the most excited one. Failing that, change the channel to Nickelodeon.

    • Parapraxis says:

      @You Cannot Untoast: I stipped relying on Nickelodeon for my investing advice ever since they got rid of Double Dare.

      I mean, come on! It was FUCKING DOUBLE DARE!!!

      • You Cannot Untoast says:

        @Parapraxis: My investments took a hit when we lost Marc Summers. And another one when Ren and Stimpy were neutered by that cranky exec.

        Still, it’s all I have.

  18. DarkKnightShyamalan says:

    So, what’s his show going to be about from now on? Cooking?

    • zlionsfan says:

      @DarkKnightShyamalan: I hesitate even to mention this, but I read your comment quickly and from a distance, so the last word looked a little bit like another word … I can’t bring myself to type it here, but let’s just say that it requires changing one letter and inserting another letter.

      And I am sooooo glad that it really wasn’t what you typed.

  19. ShipraAcastus says:

    Iv actually gotten a chance to see a few of the episode of cramers show and i must say that alot of the bashing he gets for things that he says pretty unwarranted. Has he made bad calls? absolutely, but he atleast admits to them.

    The two instances that he is bashed on most were both mentioned in this thread already. His comment on bear sterns and his interview with Wachovia’s CEO. The bear sterns comment was taken completely out of context, what he was saying was people who actually had money in the firm (aka NOT STOCK, ACTUAL INVESTMENT IN THE FIRM) would be ok (and they were made whole). It was pretty obvious to me based on the question (since it was an emailed question) and his response that this is what he was talking about (the caller later called in and said that in fact he was NOT asking about the common stock). The only thing i fault him for on this front is that he did not explicitly say that during the response but he paid dearly for that mistake. Onto the people having issues with the Wachovia CEO interview. That interview i thought was pretty heavy hitting for a television interview with a CEO. even though he never recommended the stock during the interview (after the company failed) he was the first to admit he had been “taken in” and placed the CEO on his wall of shame (which he has since removed because of the pending deal with Wells Fargo).

    In closing, yes this guy does make some bad calls, but the ones he constantly get’s beat on about seem to be people who just want to bash on him. The only advice people should take from the show (and the stuff he talks about constantly) is the “homework” aspect. Actually doing research on stocks that you own (he says 1 hour a week per stock) and making your judgment based on that (even on the stocks he recommends he says do this).

  20. Yes. It makes sense.

    Buy high, sell low. Great going Cramer.

    Typical stock market “expert”. If he actually knew anything, he’d make this recommendation roughly 12 months ago.

  21. WickedKoala says:

    Remember Cramer only cares about the ‘play’ money people put into the stock market and his opinions do not (or should not) reflect overall investment strategy. Essentially his loyal followers are ones that have money to lose, and are not afraid to lose it.

  22. CarlR says:

    So he thought about it all weekend and decided to come to the difficult decision to tell people pretty much the most basic investment advice there is – money for short-term needs shouldn’t be invested in the stock market.

  23. He’s as full of crap today as he is on any other day.

    The vast majority of consumers have no business being in individual stocks anyway. And even in a good market, any money needed within five years should be invested more conservatively and definitely has no business being in individual stocks.

    Remember the basics… your time horizon, your risk tolerance, index funds/ETFs only/mostly, diversification, and dollar-cost averaging.

  24. Snarkysnake says:

    Sweet Jesus,who is still listening to this guy ? I mean ,really ? If you had followed his non stop buy-sell , buy -sell nonsense over the last 16 months, you’d have gotten KILLED. I don’t know which way the market is going from here,but I do know that he doesn’t know,either.There are good companies out there that are on clearance right now and if you tune out the steady hum of bullshit from people like Cramer,you can pick them up at an attractive price ,hold them and make lots o’ cash. But if you tune in to these hysterical carnival barkers and panic, THE SAME EXACT PEOPLE that just picked your pocket for 700 billion skins will take another bite out of your ass. Please, folks, don’t be sheep. Invest,don’t gamble. Damn, this isn’t hard…

  25. Gokuhouse says:

    A couple months ago I moved my 401K to a more stable value fund and haven’t lost a cent since! I was down 8 percent for the year before I decided I didn’t like the way it was going, now the plan I was in is down 22 percent and I’ve moved over to a stable fund and am making money(very small amounts though, but at least I’m not losing it). I’m just waiting for the stinking bottom to be seen before I put it back into the more risky stuff.

  26. jchrisrock says:

    It was a shock to see a fairly prominent investment adviser (granted, of the talking/screaming head variety) telling an audience of millions to take their money out of the stock market. I understand the nuances of what he said, but the overall effect came from that simple statement. Yow.

  27. jsboehm79 says:

    Anyone who’s watched an episode of Suze Orman knows that anyone needed their money within 5 years doesn’t need to be heavily invested in individual stocks.

    The title of this post is incredibly misleading. All he’s doing is repeating some of that sound financial advice that has been serving those who heed it very well.

    Of course, his manner (and posts like this with incredible titles) can only lead to further panic.

  28. leoeris says:

    giggling madly

  29. You shouldn’t have your money in the stock market if you ever need it in 5 years, whether it’s in a volatile period like now or even in the boom years. In the short term, you shouldn’t be doing that.

  30. TPS Reporter says:

    Keep putting money in, especially if your company matches or in any way gives you free money. Don’t have it in the aggressive funds maybe be more conservative. But ride it out and in 20 or 30 years (if you have that long before you need it) you won’t even be able to remember how much you lost. Maybe if you lose 100k, but that is a story for the grandkids.

  31. MrDo says:

    all i know is that at 20 bucks a share, GE is a bargain that can’t be passed up. fools rush in and fools rush out of the market. unless you are retiring inf 5 years keep your money in diversified funds and don’t panic at what the fools at CNBC are selling.

  32. ricosoma says:

    Turning points in the markets often have some archetypal event that people point to that indicates the bottom is in. Cry baby Cramer’s performance this morning has my vote. The markets made a big rebound into the close. This could be the bottom for a while. The time to get out will be when the coming rally loses steam. Probably when Cramer says it’s OK to get back in!

  33. parliboy says:

    I got out of the stock market at the end of June, when I knew that the crap storm was imminent. I’m just surprised it took this long.

    As the Cramer’s recommendation, it’s valid IFF you are going to lose so much position by staying in that it’s worth cutting your losses. So the question is: how much farther have we to fall?

    I’m hoping that in another week or so, the worst of the bleeding will be over.

  34. jeffgentry says:

    If Cramer says it’s time to get out, it must be time to buy. Remember when he said Bear Stearns would be fine the Friday before they went belly up on Monday? Personally, I eliminated the last of my cash position over the weekend – 100% stock now. If it goes lower, I’ll scrape together more cash and buy more. The stock market is the only place that can have a sale and everyday consumers won’t come until prices go up. I say “everyday consumers” because it’s important to remember that every stock sale at these low prices has a buyer on the other end of the transaction and those buyers are the people that don’t sit around watching Cramer.

  35. durkzilla says:

    I like watching his show because he has funny sound effects and sometimes he gets all wound up that it looks like his head is going to assplode.

    Other than the entertainment factor his show offers no value at all.

  36. spartan789 says:

    huh…I thought he always said “there’s a bull market somewhere, I’m going to help you find it”. What happened to that?

  37. Shadowman615 says:

    This should always hold true. The stock market is *never* a good place for short-term investments.

  38. OfficeMaxie says:

    Unbelievably irresponsible message to send right now.

  39. rjbrash says:

    Ah, the PUMP-MONKEY speaks! Two days before Bear collapses, he’s pumping Bear as a great buy. Anyone listening to this twit has to have their head examined. And why haven’t the Pump-Monkeys been indicted for stock manipulation yet? The “evil short sellers” have been accused of such. Don’t it go both ways?

  40. maztec says:

    I think I am just going to maintain business as usual. I leveraged my portfolio diversity on the basis of long term investments that are global in nature, but aware that the global market will likely have issues.

    I plan on staying in for 5 years and I may as well keep buying, since things are at and approaching record lows within this period of time – and will go back up again, some day…. Unless history fails us and capitalism dies, then we have other problems.

  41. pimptacular says:

    Can you say….”contrarian indicator” at least for the short term.

  42. itmustbeken says:

    This is the same man who advised everyone to buy Google at $500 because it was undervalued. Today it’s $369.

    May I have my grain of salt now for Mr. Cramer’s recommendations?

  43. LeahReindeer says:

    401(k) or 403(b) funds are taken from your paycheck as pre-tax dollars, meaning they do not count toward your taxable income. They are not tax exempt; they are tax deferred — you pay taxes on them when you draw from them at retirement.

  44. KenyonShanahan says:

    I like how everyone here is saying “buy now, the price is so low you’re getting more stock for your money!” Personally, I have seen my meager 401k lose 26% of its value over the past year. Should I continue to pay into it when every time I do I’m losing money? The stocks may be getting continually cheaper but I am tired of losing my hard earned money. Especially if it’s going to continue to decline and I could use the cash in the short term.

  45. dougp26364 says:

    Yep, that’s what I’ve always been told. Buy high and sell low. Sell now and you’ve locked in your loses.

  46. Kevin says:

    That’s good advice… for viewers in October 2007. Is crazy Cramer going to go back in time to warn us? What a dip! If you’re in, stay in. You don’t get off the roller coaster once the lap bar is locked.

  47. TonyChelios says:

    Cramer is entertainment, plain and simple. While he is correct that if you are going to need your money in less than 5 years that you should get out. Well, that is what sound investing advice has been for ages. That bit about diversifying and getting in to more conservative investments when you get closer to retirement rings true just like it has rung true for years and years.

    However, one has to look at what his motive is for such a move. Very simply, as the stock market drops more, it is a perfect time for him and other big investors to step in buy cheap. Do you think Buffet is quivering in his boots now? No, he’s rejoicing.

    The economy works in a cyclical fashion. If you have a sound investment strategy, you already knew this, and when the core audience of this site retires in 30+ years, the poor market of 2008 will just be another bullet point in the economic history books. The market will recover, and those holding steady will benefit on the upswing.

  48. papahoth says:

    Nothing changes buy low, sell high as good advice. Cramer is a big mouth idiot that like most, if not all, of the stock pickers can only pick winners in a big bull market when just about every stock is winning.

  49. zibby says:

    Nobody real listens to this clown.

  50. vastrightwing says:

    In general, if you may need your money in 5 years or less. Then Jim is right. But then, even in good times, if you may need your assets, having it in stocks is risky. So his advice is timely no matter the circumstances. If you’re invested already, you’ve missed your opportunity to get out without a big loss. Stay in unless you need the money. Fear is what causes people to get hurt.

    I like Jim, he’s very smart and entertaining. But he can’t make his show interesting by giving long and boring technical advice. He must keep his show quick and pithy.

  51. adamcz says:

    Jim Cramer = Mr. Market. Ben Graham fans know what I mean.

  52. LVP says:

    “you shouldn’t be investing in individual stocks”

    Unless you have money to throw away and/or are day trader you should never invest in individual stocks!

    Buy low, sell high and go long.

  53. neko613 says:

    Huzzah for idiots that get their own TV show…No seriously wtf is this guy smoking? Having an all sell market is the LAST thing we need in this economic slump. I’m still shocked at the comment that he’s made.

  54. billhelm says:

    nothing to see here… really. Jim Cramer has always been full of it. this is nothing new.