Your game plan for a painful day
Stocks with decent yields and growth need to be bought slowly and methodically into the maximum pain point.
Looks like the first-day-as-worst-day theory is playing out. Looks like people are deciding that anything the Europeans do is no good after deciding just the opposite last week.
My take: We are not going to get any good news out of Europe. It is all about being less bad. I continue to see things as less bad. However, we have seen a gigantic run in every stock imaginable, and I think this is a correction that will wipe out some but not all of that amazing October rally.
Should it wipe out all? If everything is falling apart in Europe, then yes -- but I don't think that's the case. In fact, I think we are seeing a note of realism that always comes back to the same principle: We aren't going to have Lehmans, but we aren't going to have a recovery of any means.
The only way we are going to see a recovery is with growth, and I don't see any growth in Europe, even as I see it developing here and cooling slightly in China. It's telling that China's market is stable on a weaker PMI, but Europe hates it.
Post continues below.
I think many stocks that had once again become accidental high yielders really exploded upward in the past few days leading up to the end of the month. Those are now giving up the gains.
- 5 biggest worries facing US investors
- Companies put a happy face on failure
- 2 industrial stocks you can still buy
The most exposed, though, are the ones I think people want to be in: cyclicals, retailers, technology. I think that as they drop an additional 2% to 3% here, you might want to start buying if they hit decent yield points. The toughest will be cyclicals because they now trade in 2- and 3-point gobs if they are north of $50. Be careful. There is no liquidity whatsoever.
I said Monday that there is nothing wrong with trimming highfliers. I reiterate that. But stocks with decent yields and decent growth need to be bought slowly and methodically into the maximum pain point Tuesday. Retailers are the most extended and therefore need to go down the most before they can be bought. If you are at all suspicious of how one of your retailers fared in October, sell it.
Finally, a word on banks. The collapse of MF Global (MF) pretty much wipes out any chance of an advance for the group. When I see who bought their debt, I am aghast. I know this event will cause another round of "Don't give the banks any money, we don't know what they are doing" and will also cause the highest-level people in Washington, D.C., to point fingers at the group again for taking too much risk.
Sell them again, and stay away from the usual suspects.
xx is another 'cramerican' ready to lose his shirt
please read cramer's article here on friday where he advises buying the dips
because hedge funds will be buying to cushion the blow
read my response that if this idiot is buying i say look ouy below...hardly spouting off
it's called making a correct pick and profitting from it
if he was selling SLAP CHOP they would be the defective ones
glad you like my handle.....i get many comments about it and have discovered that
most people don't know what socialism really is but they sure know they hate it anyway
by the way socialist 1 (nice handle) I agree with your acessment, he is a talking head. Petaling his poison in the form of sweet grape Kool-aid. A true legend in his own mind. I'd like to see him selling a "Slap Chop", now that would be must see TV.
there are plenty of people who can't sing making money singing
plenty more on tv who make money talking and know nothing
they all got jobs by knowing somebody in the business
KNOWING SOMEBODY IN THE HEDGE FUND BUSINESS WON'T CUT IT, YOU PERFORM
OR YOU ARE OUT LIKE CRAMER ..........TALK TALK INANE TALK
if he knew anything he wouldn't have been run out of the hedge fund business
have you ever heard how he treated his employees?THIS GUY IS PURE POISON
My issue with this guy is that he should be selling used cars. Look at what he says:
"My take: We are not going to get any good news out of Europe. It is all about being less bad. I continue to see things as less bad"
Less Bad? how about just plain BAD Jim.
When i hear that statment I hear "GREED". I hear someone saying "I can squeeze out a few more dollars". People are holding this together for the wrong reason, CASH. Well years ago my father told me "Son, Greed only runs from one thing, FEAR. Well one day in the not to distant future Jim. You will write about fear and your article won't be about how to make a little more. it'll be about how to keep what little you still have.
so let's clear up the fact that cramer is hated,i don't think many hate him,they
just want his bad advice to be exposed as the fraud that it is
i just heard from a neighbor of mine whom i advised to never buy individual stocks
without protection................poor guy owned a substacial position in solyndra
the shyster will tell you that yield offers protection but dividends can be eliminated at any time
and offer no protection when the accounting is bogus(which most is)
this idiot cramer will rant against etf's but ignore him...........etf's offer instant diversification
both long and short and they are the proper play
WHEN THIS GUY SAYS BUY CONSIDER SHORTING BY USING THE SDS
Jubak has been saying for a long time that there will be plenty of aid for banks holding Greek debt and not one penny for Greece itself, and that seems to be playing out.
Some European leaders getting together for yet another meeting with bottled water and donuts, then standing in front of microphones to "announce" something is pretty much on par with the high school drama class.
I'm not sure what they're still posturing for. Trying to protect the tourist trade or something?
I've always speculated that video cameras emit "crazy gas." When people stand in front of them and the red light goes on, anything goes (and usually does).
so where is the cushioning of hedge fund buying during this down turn?
remember friday you said buy this pullback because hedge funds would cushion the decline?
remember friday when i said you are an idiot so look out below on this next pullback?
of course YOU don't remember but those who read my rants can look it up
MF Global's Motto to their customers..."What's yours is mine and what's mine is somewhere in Switzerland, it's all good!"
Gotta love Cramer...he's taking this news all in good stride. "Don't give the banks any money, because we don't know what they are doing". Don't know what they are doing? Really?
I'm pretty sure they know exactly what they are doing.
I don't think that the MF Global board of directors will standing in any soup lines anytime soon. HA! Wallstreet keeps winning! America keeps losing!
Occupy Wallstreet isn't cutting it. It's time to burn it!
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.
New study finds members of this global elite are stashing an average $600 million each in cash -- 10 times more than a year ago.
VIDEO ON MSN MONEY
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.