Let's face it: July was awful
Between the terrible data on housing, autos and retail sales and the near financial death of the US, it's no wonder we're hurting.
OK, July was an awful month. Awful for housing. Awful for cars. Awful for retail sales. Just plain awful. All made worse by the climate of fear stemming from a president and a Congress that told us we were about to die financially, and all I can say is: You don't feel great after having a near-death experience.
Not only that, but Europe was awful, too, particularly its banks, which are experiencing the kind of sell-off that we had around TARP. The declines are hideous.
You can't be that excited about Brazil, India or China either, because they are trying to raise interest rates to stem inflation, but it isn't working. Inflation is still going up.
So you can say we are on some sort of precipice and the stock market is doing its level best in eight days to build in the fall from the precipice. Here's the issue: Is there anyone who doesn't know this?
We have had a remarkable flight of money out of stocks. We have people who pulled their money out because you had to believe there was a chance that Social Security wouldn't be paid. We have people pulling their money out because of the logical belief that several major countries could default, of which we were one.
So people keep selling.
It's difficult to believe there could be anything that could come of stocks from this moment other than more selling. We have stocks that are just giving up the ghost, being crushed, obliterated. One has to wonder where the heck we would have gone if we hadn't gotten a bill!
At a certain point we will see stocks reflect the worst of July. Bonds are already doing it. Bonds are saying we have seen the peak in earnings and then some.
Until then, we are going down. But at this pace it won't be long before we have factored in the past but not the possibility of a less grim future. It is possible that confidence can be bolstered by the notion that the government isn't going to be shut down.
If you are following our moves in ActionALertsPlus -- where we have our biggest cash position in recent memory -- or my comments on RealMoney.com, you should have done your buying already. No need to commit new capital here. No statement buys.
You should also be thinking higher yield, as we have a bunch of stocks that are on the verge of some really nice yields that also have good upside like Verizon (VZ), Conoco-Phillips (COP) -- which is breaking up -- Bristol Myers (BMY) or ATT (T).
I urged people to buy an additional tranche of trading gold going into these talks. That should be taken off the table now and booked as a capital gain. But no core position in gold should be sold here. Just have to own it. It's the only thing that's working. And it isn't quitting. I just don't want the trading portion to turn into a loss, even if, when it does, I would start buying gold again. That's a round trip for gold, and I don't want it to happen.
At the time of publication, Cramer was long T.
Follow Cramer's trades for his Charitable Trust.
Only JULY was AWFUL?? How about the past 3 years??? And for me personally, the past 16 months since being laid off???????
If you've been unemployed for 16 months, why are you posting on MSN money rather that hitting the pavement looking for work? Let me guess, you'd rather cash your unemployment check and bitch impotently about your lot in life?
shut up, cramer.
just... shut up and switch jobs, will ya.
i hear u but im not listeningggg!
The spending bill just dealt the economy it's death blow but that's what the republicans wanted so they can get back in power and back to robbing the poor to feed the rich.
If we should be mad at anybody it's the rich. they got 12 years of Tax cut/subsidies to create jobs but they bought private jets and invested the money for them self instead.
While I'm glad Cramer isn't spewing gloom and doom every time the market turns or someone in DC does something stupid (read: everyday) he has become a nonsensical caricature on the stock report. I agree with Herbert when he says, "In the span of 24 hours Cramer goes from "With crisis averted, it's time to buy" to "Let's face it: July was awful".
Cramer is in it for HIS money, not yours or mine.
Aw heck, what we need is more anaylist publishing their one sided, personal opinions for public consumption. What we really need is a law that requires analyist AND their parent company's to "back up" the articles they publish, or be subject to severe fines and penalties. It is sad that a large portion of the public listens to such crap and believes some of it. If you read 10 analyist opinions, you have 10 different opinions and advice.
What is much more important, what is Tiger never wins another tourament. If so he might loose his 25 million dollar mashion in Florida and his jet. And them where would his 19 sweeties live? Of course Sam Snead won about 140 touraments world wide, about twice as many as Tiger or Nicholas. Of course the one sided sports commentators do not ever talk about that, sad, very sad indeed.
Lastly, why don't Tiger start going by his "real name" (Eldrick), the name that his Daddy gave him????? He does not look like a Tiger, he looks more like a Pussy Cat.
The Tea Party has mandated fiscal austerity, though not enough yet to "liquidate labor, liquidate capital" as so many fans of Austrian, or root c****conomics desire, rather than to deal with the worst concentration of wealth since 1929. That means the Fed is on its own to deal with unemployment and/or keep us from falling into recession, or worse. At best, that suggests stagflation, the worst of all worlds for stock and bond investors but good for gold and other intangibles. At worst, it's 1929 again. Small wonder the Pimco All Authority fund is short the market and long junk bonds. All investors might wonder why.
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Consumers are very status conscious in Asia, Africa and other emerging-market areas. This is especially true in China.
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