Don't Get Spooked By Bad News
Even though Cramer believes this market has bottomed, he concedes that it’s not an easy environment to handle. So he reminded Home Gamers on Monday to remember his thesis that the Fed will cut rates at its Dec. 11 meeting and stick to their guns even if things start looking bleak again.
Cramer believes the economy is too weak and the financials are too troubled for the Fed not to come to the rescue. And when the Fed cuts, expect the banks – all of them – to go much higher along with the rest of the market. But before next week’s meeting, Cramer expects there to be bad news.
There will likely be gloomy economic data and bad earnings reports between now and then, he said. Don’t be surprised if the market gives reason after reason to get out of stocks altogether. But don’t panic. Short-term bad news is no reason to sell a good long-term stock.
In fact, good news in the next week would actually be bad news because it would endanger the thesis that the Fed is going to cut because things are so dire.
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