Investors these days are so worried, Cramer said Tuesday, it’s costing them money.
They fret about the Apple iPad release, they fret about Treasury auctions. They fret about housing and a commercial real estate collapse. They fret about health-care reform, the weakened consumer and the Chinese asset bubble. In short, they fret too much.
But “ever since the bottom,” Cramer said, referring to last year’s market lows, “every action that’s been motivated by fretting has been just plain wrong.”
While a generous amount of concern is healthy, this fear is too much. And it’s obvious from the moves in a number of sectors that these worried investors are missing out on some tremendous gains.
The insurers – Principal Financial , Lincoln National , MetLife – were once left for dead, but now are coming back. Sure, the moves in these stocks aren’t “as breathtaking as their declines during the crash,” Cramer said, but they are “still remarkable.”
Commercial real estate was supposed to kill the REITs, pulling down everything from Federal Realty to Simon Property . Investor fears of an impending collapse alone managed that, but now these stocks are rebounding. They’d sunk so low, in fact, that they have plenty of room left to continue their run.
In China, short sellers leaned on the copper, steel, coal and mineral companies, assuming the country’s asset bubbles would pop. But a quick look at Freeport-McMoRan , Vale , BHP Billiton or Walter Energy shows that didn’t happen.
These kinds of scenarios are playing out in industries across the board: health care, regional banks, the industrials – you name it. So Cramer’s message to viewers was to stop fretting and take advantage of the moves, especially now that both the market and the economy are much improved from a year ago.
“The time to fret was March of 2009,” or the market’s nadir, Cramer said, “not April of 2010.”
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