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Cha-Ching! Fear Can Make You Money

Monday, 20 Dec 2010 | 6:27 PM ET

The market is so overcome with fear, Cramer said Monday, it's creating sales in great stocks.

Mad Money, December 20, 2010
Mad Money host Jim Cramer provides traders with all manner of investing advice.

Take Akamai Technologies , for example. A takeover rumor, in which Cisco Systems was said to be looking at the technology company, sent shares higher on Friday. After an uneventful weekend, though, Akamai's stock fell sharply on Monday. The Cambridge, Mass.-based company also lost a court ruling in its four-year patent battle with Limelight Networks over software that speeds the delivery of Web videos, which sent its stock even lower. Cramer doesn't think the court decision will affect Akamai in the long term, however, making the decline a buying opportunity.

Shares of Acme Packet also traded sharply lower on Monday. The Bedford, Mass.-based technology company, which delivers voice and data services across Internet protocol, is up 400 percent year-to-date, so Cramer wouldn't buy shares even on this dip. But he is surprised that a winning stock like this isn't selling higher into year end, that there aren't confident buyers to prop it up. He blamed it on the typical fear that plagues investors when they see a share price fall, and the fact that selling often begets more selling.

This fear theme could be played out in any number of sectors because investors just don't seem willing to trust the market. No deal with Cisco clouded over Akamai's bullish story. Alleged competition from Cisco is what's hurting Acme. No one wants to own Citigroup because they fear a short-term and minor pullback even though Cramer thinks the stock could double in the long run. The fear is palpable, and it is both keeping people out of stocks and causing sales in stocks.

So what is Cramer's recommendation for surviving this jittery market? As always, stay in the game.

"Don't be some bear waiting for a 'Buy one, get one' sale. This ain't cereal!" he said. "This is money, and money's being made, not lost, buying stocks that I think will continue, continue to climb right through to year end."

Call Cramer: 1-800-743-CNBC

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