Don't 'go away' too early
If you sell out now, you could miss some solid performance. Plus, it's still too early in the year to be worried about your results for all of 2013.
To which I say, sure, but the key isn't to fear May. It is to make as much money as you can by the first quarter's end so you can take something off the table of sizable proportions before we enter the second quarter, a period that truly has been subpar for the market.
I discussed this issue with Stephanie Link after "Mad Money at the Half" -- a show that has been electrifying, I might add -- and how those who are selling now because they fear May (selling in March and going away, so to speak) might end up missing the performance they need to make before they go into hibernation.
I have always been fascinated in the concept of when to start caring about performance and when not to. Karen Cramer taught me that you shouldn't even look at your run in the first quarter. You had to try to shoot the lights out, knowing that if you failed, you have the whole rest of year to make it back.
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I always have to ask what planet so many of the managers I listen to and read are from. How little do they really know about the business of performance? Don't they know that you have to take more risk as the beginning of the year -- meaning that if you're bullish, you have to go for some beta?
How can they be so conservative? Are they just willing to tell their investors, "Hey, I didn't believe it"? Or, "Look, it was all the Fed, so I couldn't trust it"?
Boy, my investors never gave a damn about my excuses. They wanted performance no matter what. That's what so confuses me. Some of these managers already have to hope for a huge sell-off to catch up with the averages, and most seem ill-prepared to even buy on an individual stock dip.
You almost never hear someone say, "I said I was waiting for a drop in PetSmart (PETM), now I got it and it checks out, so I am a buyer." No, the stuff that gets dipped is the stuff they don't want. They're really hoping for a market-wide sell-off, and then when we get that, they will hate stocks for whatever caused the sell-off!
I think the time to take risk is when you still have time to make up for the damage. The time is still now.
If you really shoot the lights out, you can take the spring off! If you don't, then you better hope everyone does sell in May, because otherwise it just might be too hard to catch up.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in stocks mentioned.
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Just to be clear, this statement is coming from the same guy who told us all to buy Lehman Bros about 10 minutes before they collapsed.
All is BS ... pure and simple. The "markets" and the "pundits" mean absolutely nothing. Let the "devaluation" in the dollar continue! Yeah, sure the unemployment rate dropped and "housing" is the determinate...give me a break. More "layoffs" coming to pad the same "stockholders" wallets. What a joke!
So now we're supposed to be focused on a one year time frame? Is that what these broker types now mean by "Long Term?" Or do we only hear that one after the crash and we're left holding the bag?
This market may continue higher but the atmosphere is getting a little thin. The higher you go, the steeper the climb.
Has it crossed your mind that the $ might be the loser in this scenario?
After which, just let you imagination run wild.
Reality check folks. What goes up like a rocket, comes down like one. Now is the time to look at some moderate profit taking before the slide begins. When it does, it is then a matter of how far it will fall before the next climb. That is buying time.
Gee, I hope for once I can get it right. It's buy low and sell high...right?
People need to wake up and realize this Country is in BIG trouble!
This market is taking off because we're entering Hyperinflation. It's that simple!
The Federal Reserve and the Government has been INTENTIONALLY lying about inflation data but Now their lies can no longer be covered up. You just can't keep printing money like mad and not have it go somewhere...
Healthcare, Gas and Oil, Food , Housing costs are all SOARING! But wages are still stagnant!
This isn't going to end well!
Don't let Jim Cramer, be your "only guide"; Sometimes he's right, sometimes wrong..They all are..
But at least you are here reading and sharing ideas...?
That's how you learn.....Good or Bad.
You that have never made a mistake in Judgement, should certainly "cast the first stone."
The number 1 sign of the appending apocalypse...... ABS complimenting Re-Tog on a post........ run for your lives and for the love of god SELL SELL SELL!!!!!
Actually would be great to see more of this on this site, good stuff to both of you.
Next week I am taking profits and moving into a more defensive position. Better to cement previous gains then to lose them trying to time the market chasing the last 1%.
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Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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