Not Every Big News Story Sways the Market

“Just because a story is big news, that doesn't necessarily mean it's important to the stock market,” Cramer told viewers on Monday’s “Mad Money.”

From the unveiling of President Barack Obama’s budget proposal to Europe's sovereign debtcrisis, there are always going to be news events that could prompt an investor to sell the market, Cramer explained. To those who view the stock market as an asset class versus bonds and gold, they think various news events could derail anything good, so they are ready to just cash out. In turn, some stock commentators have recommended investors take a “risk off” approach because of all of these troubling news stories. But Cramer thinks the “risk on, risk off” approach is bogus.

So how should investors process worrisome news events? He said it depends on whether the individual stocks may or may not be affected and impacted by said events. Many times, bearish news stories have nothing to do with individual stocks, much less impact them in any way.

“We aren't whistling past the graveyard here. We're simply not at the juncture where bonds represent serious competition to stocks or we haven't seen the bad news yet on the tape,” Cramer said. “Until we do, we can't figure out how these potential negatives factor into the stocks we like.”

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