Sometimes investors just want to throw out all of their stocks and decide to get out of the game. That was quite evident to Jim Cramer on Thursday when the averages continued their losing streak.
But there is something different about this selloff that bothered Cramer. It reminded him more of the selloffs the market experienced between 2007 and 2009 than the ones we recently experienced.
"I think this market has changed, in that the vast majority of portfolio managers have suddenly become fearful of buying the dips," the "Mad Money" host said. (Tweet This)
Meaning, for the longest time, the best strategy of the era has been to wait for the stock of a company that you like to come down to a bargain price and then buy it.
"But something is different this time and it's got people taking a pass on this dip. This time the decline feels more like the 2007 to 2009 period where buying stocks on the way down just meant you were going to lose money," Cramer said. (Tweet This)
The only real leader on Thursday was Netflix, which Cramer referred to as the slayer of all things media. But what is good for Netflix, is good for Netflix alone, unfortunately.
So with a market with new lows and no new followers, Cramer came to one conclusion: buying dips has become the equivalent of falling off a tight rope without a trampoline or safety net. It is now a symbol of complacency.
Cramer warned investors that it is time to keep cash on hand. Do not fall in love with stocks as they dip, and accept the fact that you are no longer buying a dip.