This market tizzy is all about Russia
What does the country have to do with the price-to-earnings ratio of the S&P industrials? From here on in, everything.
It must have just dawned on people after work last night that Russia is bad news for the market.
I guess investors needed to hear it from companies as diverse as Siemens, Adidas, and Shell (RDS.A) all at once to drive the point home. Yes, Russia, Ukraine, Russian impact on Europe, strong dollar -- it's all coming together in one ugly morning.
There's a grudging recognition that not only are the sanctions not working but they are making Putin dig in his heels. Digging in his heels means he's going to cut the natural gas spigot to Europe when it gets cold. I think that's how a company like Siemens could withhold an outlook for 2015. I think it's how Shell last night said it could be a game changer. Adidas didn't even have to wait until winter to lower the boom. It did so now.
I think the chasm is growing here not just with Russia and the West with but the West and the president. The Germans, who we think are very much in control of the negotiating stance, want things to be solved diplomatically.
President Barack Obama wants it to be solved.
The Germans want things to be solved before it gets cold.
Obama is not worried about warmth -- he's got no ties to Gazprom.
The Germans have huge business interests in Russia, and many of its businesses run on that natural gas.
Obama could not care less about business. Never has, never will. In fact, I think he doesn't believe he is accomplishing anything until actual earnings per share are hurt. I sometimes wonder whether he thinks the stock market is this bizarre abstraction that should be going down because of the things he is doing and if it hasn't he's not being tough enough. I think many of us felt that way about the banks in the early Obama administration days and are now feeling it about the industrials.
Regardless, it is all about Russia today and a recognition that we are, at this pace, only a few weeks from cutting numbers (Russia-Europe-strong dollar), and that's going to tar pretty much every major international industrial company that's headquartered in the United States.
Of course the money's going to go somewhere, most likely biotech and the cloud, the same refuges as always when an economy slows and the dollar is strong. Sure, in the old days it went to Procter (PG), Kellogg (K), Colgate (CL) and the like. But they, too, have too much dollar exposure, so they don't get bought either.
Until someone capitulates, this one is going to get worse, not better.
What does Russia have to do with the price-to-earnings ratio of the S&P industrials? From here on in, everything.
Jim Cramer's Action Alerts Plus: Check out this charitable trust portfolio for the stocks Cramer thinks could be winners.
Sheesh, why is this Cramer moron still allowed in the news? **** has been wrong every single time he ran his head since I can remember.
If it wasn't for his Insider status and the fact that the SEC are a bunch of paid patsies that couldn't investigate a lemonade stand hold up, he'd be as broke as the rest of us.
This whole credit bubble is directly and unarguably the result of the Fed's idiot credit pumping and money printing... no more, no less.
This is what you get when you have a President that doesn't believe in American exceptionalism and doesn't believe that America should be the greatest world power.
A new world power takes our place. THe leader of the free world is no longer considered the most powerful man in the world, Putin is.
Good job Mr. President.
We certainly shouldn't be telling Russia Right or Wrong after Iraq and setting up some many Dictators across the Globe. Russia is hardly playing Chess with it's own board, anyone thinking so is out of touch with Reality. I would agree that Obama and his Republican Counterparts are barking up the wrong Tree as this can potentially spiral out of Control. Western Nations have been waging Economic Wars against Russia for Decades so it's not that much an surprise what has happen thus far.
Bottom line, Jimmy is clueless about this as are many others. This is a dangerous Game of Chicken and Mouse played in someone's own Backyard. Western Nations are famous for setting up Horrific Dictators then claiming innocence. This Holier then thou attitude will eventually Doom us All. For all intent, this is the Pot calling the Kettle Black.
jim cramer's so full of sh*t, it's coming out of his mouth !
The STOCK MARKET BUBBLE IS BREAKING !! KABOOM, KABOOM !
This time these MONEY MONGERS ARE COMIN' DOWN WITH US !!!
Their PAST & PRESENT out of control, uncontrolled CRIMINAL CAPITALISTIC GREED & CORRUPTION has DESTROYED the USA !!
Anything is better than more war, which means more American deaths and more national debt.
It used to be capitalism in reference to business had several components. Capital in regards to people, capital in regards to community involvement, capital in regards to profit. Now it just seems all profit focused.
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