The tales of woe from the bears are never-ending: The subprime explosion will destroy everything in its path. The Federal Reserve could tighten rates. All the M&A activity lately is just a big bubble waiting to burst. Housing is just going to get worse because defaults are on the rise. And oil, that’s going to $80.
Hey, the media loves a sexy story, Cramer said. But if you can’t take a bit of turbulence, you probably shouldn’t be in the game. Yes, these rumors – and that’s just what they are as far as Jim’s concerned – will send stocks down. Financials, machinery, housing, retail, restaurants and tech all can expect a hit of some kind. But there have always been worries in the market, and the bears have been wrong before. Cramer specifically remembers the Dow at 1,200 and traders at the time thinking the world was going to end.
Cramer won’t cut and run. Not for this Sell Block. If you plan to take profits in any stocks, then why not cash in some Hilton, which is up 70% since he recommended it on June 20 of last year, thanks to the Blackstone buyout. Cepheid is up 38% since Cramer’s March 26 call, so you might want to ring the register there. The one stock you should probably let ride, though, is Research in Motion. RIMM is up 31% since Jim gave it the nod on June 6, and he doesn’t think it’s done.
Bottom Line: This is a great market, but if you can’t listen to the endless stream of negativity coming from the press without getting scared – maybe it isn’t for you.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org