Cramer: It's a mistake to buy stocks now

Investors need to know more about the Malaysian jet crash before trading, the CNBC host says.

By MSN Money Partner Jul 18, 2014 12:19PM
Image: Stock market © Zurbar/age fotostockBy Lee Brodie, CNBC

Jim Cramer often says to buy on weakness. This, however, isn't one of those times.

Instead, Cramer is cautious of stocks, broadly.

Although Cramer doesn't enjoy focusing on money in the wake of tragedy, especially when lives have been lost, Cramer believes any and every catalyst that moves the market must be weighed by investors. Nothing less would be prudent.

And on Thursday, a powerful catalyst roiled markets. A Malaysia Airlines Boeing 777 with 295 people aboard crashed and burned in an eastern Ukraine wheat field near the Russian border. Ukrainian officials called the crash an act of terrorism and said the plane might have been shot down by a Russian-made antiaircraft system.

Developments sent the Dow Jones Industrial Average ($INDU) tumbling by triple digits. And although Cramer has, in the past, advocated buying geopolitical induced selloffs, this time, Cramer would not buy the dip.

"First, the market was barely down on the news. Our averages have gone so high that even 130 points down on the Dow when it is at 17,000 is next to nothing," Cramer explained. "Second, I can not sanction any buying until we know more details about the crash."

"Also President Obama announced tougher sanctions last night against Russia for its meddling in Ukraine," Cramer added. That too, could generate a ripple in unforeseen directions.

As if that weren't serious enough, market headwinds are blowing elsewhere in the world, too. In the Middle East, the Israeli military launched a ground offensive in Gaza. A statement from the Israeli military said the operation will include "infantry, armored corps, engineer corps, artillery and intelligence combined with aerial and naval support." That, too, could spook markets.

Given the potential for so many unexpected developments in two global hotspots, Cramer said that heading into the summer weekend, pros will most likely take profits. "They will be concerned that something could happen over the weekend and they'll lock in gains. That's the likely scenario."

And, making a selloff even more likely, Cramer added that events sent investors into bonds, which in turn sent interest rates lower. "Those lower rates are negative for banks. And banks had been a leadership group in the rally."

All told, Cramer can't sanction buying, not yet. "With markets near their all-time highs, I believe that as pros assess these developments over several days, the inclination will be to take profits, not to buy. At this point you have to monitor developments very closely and see what develops."

More from CNBC

Jul 18, 2014 12:25PM
Don't be fearful.  I can assure you that the missile attack on the Malaysian jet was not done by terrorists or pro-Russian rebels.  It was, in fact, the result of a spontaneous demonstration in response to an internet video.

Hillary Clinton

P.S.  What difference does it make?
Jul 18, 2014 2:36PM
wrong when he called a top on may 7...........wrong now
he will keep making these calls until we get a correction at which point he will be right and use this to sell his crappy advice

Jul 18, 2014 2:55PM
Makes no difference what the "stocked" market does.  It is entirely "rigged" and disconnected from the real world US economy.  It is a joke and a disgrace that the SEC does nothing, knowing.  Inflation is going through the roof right now and the dollar is being devalued beyond comprehension...and, still nothing is being done. Nothing. Now, it is that new catch all word is "boom". Might be right on. Boom!
Jul 18, 2014 3:06PM
Crammer knows less than most and crows most too..... I pay no attention to what he says and you should as well. 
Jul 18, 2014 3:07PM
"Heading into the summer weekend, pros will most likely take profits. "

I guess they didn't.
Jul 18, 2014 4:17PM
What is happening with America,
companies are relocating to other country, old people are retiring in other countries, and the poor of other countries are coming here?  It looks like we are heading to be the poorest country?

Jul 18, 2014 2:41PM
Cramer is fearful, time to be greedy.
Jul 18, 2014 2:52PM
Cramer is wrong more times than right....Great time to buy stocks. Jump in there and get some Intel & Microsoft to start with
Jul 18, 2014 3:59PM

Congress is who the American people should be livid about, they get big bucks and are stuck on abortion, gay marriage, and impeachment, and the dems are no better at doing anything for the
Average American worker. By the way the country is now going to have a real cost issue regarding children refugee's and somehow it needs to get addressed. ALL parties promised a lot when they ran
last time around and NOTHING is done, are the American's people going to listen to their empty promises again in Nov. and be fooled?
Jul 18, 2014 3:45PM
No worries we have Obama...What a guy!!
Jul 18, 2014 4:12PM
The world is nervous. If in doubt, shoot it down. Another plane disappeared into thin air. It is not just Russia or North Korea. Trouble everywhere. The same old fights over different religions & money. Cramer does the tip toe hoping to get through the troubled times. Interesting.
Jul 18, 2014 3:08PM
Just keep in mind we have Obama and he has our worries be happy.
Jul 18, 2014 3:43PM
I honestly don't know how Cramer survives in this line of work. He is wrong more often that a coin toss. I guess people must find his stupidity entertaining.
Jul 18, 2014 4:30PM
Wow, it took just 4 hours to prove Jim wrong.
Jul 18, 2014 2:57PM

Lee you forgot to get a plug in for Cramer's book......... I can hear him screaming at you now


You know nothing......... NOTHING!

Jul 18, 2014 5:25PM



Speaking of Cramer, there is another article on MSN today called:  .


Kinda sounds like Jim to me.



Jul 18, 2014 3:27PM
So the stock market gets depressed when a bunch of people get killed. Who knew?
Jul 18, 2014 7:31PM
V V  and 4Love  MAX         This is for you !

When a New York Times article cast doubt on the accusation Usama bin Laden had a hand in the 1998 bombings of African embassies, President Clinton questioned his own CIA, according to a note he scrawled to his national security adviser.

The memo, part of a 1,000-page release of documents Friday afternoon by the National Archives, was written after the president apparently read an article in the self-professed "paper of record" casting doubt on the U.S. Justice Department's case that the Al Qaeda mastermind was involved in the Aug. 7, 1998 bombings of U.S. embassies in Kenya and Tanzania. Some 224 people were killed in the twin attacks, including 12 Americans.

Two months later, a federal grand jury in New York indicted bin Laden and 20 others for participating in a terrorist plot to kill Americans. But the Times article, entitled “U.S. Hard Put to Find Proof bin Laden Directed Attacks,” and written the following April, raised doubts about bin Laden's involvement, at least with Clinton.

“Sandy, if this article is right, the CIA sure overstated its case to me — What are the facts?”

- President Clinton, in '99 memo

Jul 18, 2014 5:53PM
And which Tea party member has condoned this atrocity by Putin ?

 Be specific now,,        you made an accusation,,             be a MAN and back it up,,       If you can
Jul 18, 2014 3:57PM

Don't feel too bad Little Beav. Obummer is the most unpopular president ever here but they love him in North Korea, Russia and Syria.

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
266 rated 2
485 rated 3
660 rated 4
586 rated 5
652 rated 6
640 rated 7
504 rated 8
289 rated 9
159 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.