Even the most seasoned Wall Street veterans blink, Cramer likes to say. They get scared, sell their holdings and head for cover. But this reaction by big money managers creates for the rest of us an “exquisite moment.” One we can jump on to generate returns that will beat these so-called professionals for years.
Take the market action just before the two Iraq wars, in 1990 and 2002. CNBC, celebrating its 20th anniversary this month, was there for both, by the way. Longtime watchers probably remember the dip that stocks took – until the bombs started dropping. At which point, the market regained its losses and then some. Why? Because the big money guys who set share prices weren’t worried any longer about these wars hurting the U.S. and its businesses.
Cramer’s recommendation: Look for these kinds of situations. When the sentiment is overwhelmingly negative, as it was in 1998, and a catalyst similar to either Iraq war, then the stage is most likely set for another exquisite moment. And that, the Mad Money host said, is something you don’t want to miss.
Did March 2009 signal something similar? Watch the video for Cramer’s answer.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org