Cramer: The World Is Not Ending
"What do Egypt, Italy, Ireland, Greece, Spain and Portugal all have in common?" Cramer asked Thursday. "The answer is that none of them have caused the end of the world as we know it."
Last year, the market was introduced to PIIGS (Portugal, Italy, Ireland, Greece and Spain) and told these countries could bring down the U.S. banking system, Cramer said. In turn, U.S. stocks sold-off across the board. As it turned out, however, U.S. banks were more capitalized than anyone thought. The International Monetary Fund bailed out Greece and the problem went away.
Two weeks ago, political unrest in Egypt began and Wall Street started shorting.
Yet, Cramer noted U.S. companies have continued to report positive earnings results. He expects companies continue to report positive earnings irrespective to various current events.
What's the bottom line?
"When people say it's the end of the world just because of some financial or governmental upheaval, you need to put that event into the perspective of earnings," Cramer said. "If there is no impact or if there is a chance that something can go right, perhaps you should think twice before you bail on stocks. Instead you should be ready to pounce when others panic."
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