Finally, someone kicked a little sense into the market! It has finally gotten some rationale and is reacting positively to good news.
As much as this seems like common sense, Jim Cramer noted that the opposite has been occurring. In fact, Wednesday's session was a reminder that investors can make money from the thoughtless panic of others.
Panic itself is not a strategy, but buying from those who panic is one of the greatest and most lucrative strategies in Cramer's book of investing.
"Yet, because of fears about what a decline in oil really means, we hadn't even thought about what lower interest rates mean for homebuyers. Today we did." There's some rationale.
When rationale re- enters the market, suddenly investors realize that they want to buy stocks of companies that benefit from macro trends. Not sell them.
Wednesday proved that it pays to stand your ground and not panic. Instead, you can plot the high-quality stocks that you can calmly grab on the next stock market freak-out. It's one of the best money- making strategies known to man.