Democrats such as Elizabeth Warren had their eye on business and the working class during the first 2020 presidential primary debate in Miami.2020 Electionsread more
The issue over health insurance marked the first stark divide among the candidates, and sparked a heated back-and-forth between many of the candidates on stage.Politicsread more
Huawei's legal chief told CNBC that the company makes "solutions for civil use."Technologyread more
Four candidates mentioned China — but none of the Democratic contenders brought up trade in the debate.Politicsread more
In a strategy to draw attention away from Wednesday's Democratic debate, President Donald Trump's reelection campaign bought out YouTube's "masthead," the leading...2020 Electionsread more
The Federal Aviation Administration said on Wednesday that is has found an issue with the Boeing 737 Max that the manufacturer must address before it lifts the grounding...Airlinesread more
The collapse of the deal potentially ended Sinclair's hopes of building a national conservative-leaning TV powerhouse that might have rivaled Fox News.Mediaread more
Virginia Sen. Mark Warner breaks down the idea behind a bipartisan bill he introduced to provide more transparency in Big Tech.Technologyread more
Tesla is working on new battery cell designs, and a way to make their own cells, with R&D teams in a lab near its car plant in Fremont, California.Technologyread more
These attacks have given the public the opportunity to examine the problems associated with ransomware, where corporations -- not obligated to disclose these attacks -- have...Technologyread more
Wi-Fi 6 will be the next-generation wireless standard. Along with 5G, it will represent the next big shift in connectivity and data, said Irving Tan, senior vice president and...Shaping the futureread more
Sometimes, even the best stocks get hit hard by broader market sell-offs, and it's natural to wonder why, CNBC's Jim Cramer said.
But most of the time, it's not because of some underlying weakness in the stock that investors didn't catch.
Nowadays, market sell-offs can happen because of index futures rather than actual fundamentals, an action that the "Mad Money " host said seems "at best stupid and at worst corrupt" and can drive investors crazy.
"The truth is, your inclinations are right and the action is every bit as stupid as it appears. There's no way to think of it other than negatively," Cramer said.
That's why investors need to remain level-headed in the face of widespread downturn. All markets will eventually go down, but you can make those declines work for you, not against you, Cramer said.
These days, futures run the show, and investors should never flinch at stocks going down despite strong fundamentals, he advised.
Now that broader trends tend to drive the market more than individual stocks, Cramer said it's worth identifying specific metrics, or market measures, that can predict what most stocks in the index will do.
"If you think that higher oil correlates with economic growth, then you're most likely to set up a basket of stocks that does well when the economy is accelerating, and you can buy that basket every time oil goes higher," Cramer said.
Metrics can make or break your portfolio, and Cramer said investors need to realize that key metrics like oil, the dollar, and interest rates play a controlling role in the market and have the power to wreak havoc on stocks regardless of their strength.
Cramer then explained why he's against investing in exchange-traded funds, or ETFs, which have seen a surge in popularity in the last several years.
Proponents argue that ETFs guard against "single-stock risk," letting you play an entire sector rather than putting all your money on one potentially bad stock.
Cramer doesn't buy that argument. "You want to be in a stock because it's the best name in a sector that's growing. You don't want to be in a group of mediocre stocks that will pull down the high-quality stock you've chosen," the "Mad Money" host said.
The "Mad Money" host made an exception for GLD, an ETF that tracks the price of gold, because of its accuracy, but on a larger scale, said that ETFs can distort stock valuations too dramatically for his liking.
"At the end of the day, I'm against ETFs because they often create enormous distortions that can obliterate even the best of stocks," Cramer said. "You have to accept a lot more risk if you own a stock that's particularly hostage [to] a given ETF."
There can also be times when smaller companies reflect poorly on their larger counterparts. Cramer called the effect "guilt by association," which can spur larger rotations in the market without much explanation.
"When you're dealing with high-growth companies that sell into the same arena — cloud, mobile, social, big-data analytics — you have shareholders who own these things only for the momentum and they can be blown out rather easily," Cramer said.
He suggested that investors think of high-multiple stocks as their own sector, since they are particularly vulnerable to market forces because "they're expensive and have no yield support."
"When your stock keeps coming down even though there's nothing wrong at the underlying company, ask yourself if there's a larger rotation going on," Cramer said. "If there is, you have a decision to make, cut and run or buy more."
Finally, stocks can also drop unexpectedly due to other investors shedding their shares for external reasons.
For example, "hedge funds that are under pressure to raise money might have to sell stocks that they believe in simply to have enough cash to meet other demands," Cramer said.
Those kinds of sell-offs can create major buying opportunities for investors, but Cramer insisted they remain cautious.
"Be careful not to get too bold, because you have no idea how big the losses are or how much cash the sellers need to raise," the "Mad Money" host warned.