Cramer during tonight’s show offered a mea culpa to viewers: Despite the horrible effect he thought health-care reform was going to have on stocks, all the major indexes have held up since the bill passed on Sunday. In fact, barring today’s declines – and he didn’t think they were linked to health care – the market dipped for only about 20 minutes after Monday’s opening bell, then continued its bullish move upward.
Possibly even worse, Mad Money viewers who took Cramer’s advice missed a chance to buy that dip. He’d fully expected a pullback to follow the House’s yea vote, giving viewers a great entry point on any number of stocks. But that window of opportunity closed too quickly for most people. And investors who took profits before the vote never got the chance to get back in.
So what happened? Here are his 10 reasons why he missed the health-care call:
1. Comments from Caterpillar . The company said just before the vote that a reform bill would cost it $100 million, and Cramer took that to mean earnings across the board would get hit. But with CAT is just $2 off its higher right now, Cramer said, “Clearly I was wrong to get so bent out of shape by what they said,” Cramer said.
2. Panicked money managers would spark a sell-off. Cramer figured so many pros doubted health-care reform would pass that a Democratic win would cause a stampede of selling. That didn’t happen. He thinks money managers might have been happy that the debate was finally a thing of the past.