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Mar.27
8:33 PM ET
Friday, 27 Mar 2009
Contrarian Cramer Blasphemes Big Money Bullies

A rally is a rally is a rally, Cramer said Friday. Banks won’t reject your deposits just because the cash came from a bear rather than bull upswing. That’s why he has always urged investors to stay in the game – you never know when opportunity will strike.

Forget “buy and hold.” That strategy is a lazy, irresponsible way to invest. Cramer endorses active money management, where stocks are bought and sold according to the market’s fundamentals at the moment.

Need proof that it works? How about September 2008 when he advocated selling 20% of your portfolio at Dow 11,000? Or a month later when he told viewers to take enough profits to cover any big expenses over the next five years? Those calls turned out to be quite prescient. So was Cramer’s buy recommendation during the second week of March. The following Monday, the 23rd, the Dow soared 500 points higher.

This is how astute investors make their money. Of course, the “professionals” would never admit it. They’d rather you hand over your cash to them. Stay all in the market all the time, they say – because that’s how they make their money. Cramer, however, believes you are the best manager of your portfolio. And he’s using his 30 years of experience to teach you how to do it. That’s the whole reason Mad Money exists.

So here is Cramer’s plan for the near term: If you earned some nice returns from this rally, take profits. Better to lock in those gains while you can. Then keep alert for good stocks, specifically those that other frightened investors have oversold. That way you can pick up a strong company at a discount.

Lastly, keep watching Cramer so you can take control of your money. After all, no one cares more about your cash than you do.




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