Mad Money

Cramer: Headlines could ruin your profits

If you're letting the headlines influence your investment decisions today, Cramer thinks you're going to kick yourself tomorrow.

That's because a lot of the headlines and resulting analysis don't make sense to Cramer.

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For example in the market right now you'll likely run into headlines that suggest crude oil is challenged and heading lower. You'll also find related analysis suggesting the broad market will go with it.

"Yet only about 10 percent of the market does better with higher oil prices," Cramer noted, so lower oil shouldn't drive stocks lower; it should be bullish for 90 percent of the market.

Making the analysis all the more confounding, not only does send prices at the pump lower, but, in turn, those lower gasoline prices often spark additional consumer spending.

Therefore, selling out of position because oil is declining, may be a mistake.

And the phenomenon is hardly limited to oil. Cramer believes the same thing is happening with headlines about interest rates and the subsequent analysis that suggests it could signal demand weakness.

So often, Cramer has said lower rates should ignite the economy, not impair it. For example, lower interest rates make homes more affordable. And home buying drives a disproportionately large percentage of the domestic economy. In turn, a slew of related retailers could also benefit.

Again, selling out of a position because of lower rates may be a mistake.

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Cramer is seeing these kinds of headlines and misguided analysis all over the market and it frustrates him to no end, because he worries individual investors will become tangled up in the confusion.

If you find yourself in this kind of situation, Cramer says rather than sell impulsively, take a step back; oftentimes common sense is an investor's best weapon. "Ultimately I find logic wins and facts don't lie."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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