Focus on the Buying Habits of the Big Money Players

On tonight's show we came back to one of my favorite themes, that the idea of "the market" is at best unhelpful. You have to focus on what the big players in the market are buying and selling, and they almost always go by sector. That's why Jim so often uses the Wall Street as fashion show metaphor.

There isn't a herd of big institutional money managers buying "the market" and selling "the market." When we get a bear market like the one we have now, what you see is most of the big money guys selling most types of stocks or sectors. But they've got all that money to manage, they have to put it to work somewhere. No money manager is being paid to sit in cash, even if that's the most prudent thing to do.

That fact, that they have to buy something at some point, is what adds the extra juice to the series we're running this week on healthcare stocks, starting tonight with Genentech . This is the group that we think the big money guys will flock to, now that they're feeling like there are fewer and fewer places to turn.

And just as a side-note, historically, the stocks that we've recommended as part of a series have tended to do better on average than individually recommended stocks. That's why I'd pay attention to the next healthcare stocks Jim rolls out this week as part of our multi-part series on the one sector that's immunized against all the things that are hurting most other companies.

Cliff Mason is the Senior Writer of CNBC's Mad Money w/Jim Cramer, and has been that program's primary writer, in cooperation with and under the supervision of Jim Cramer, since he began at CNBC as an intern during the summer of 2005. Mason was the author of a column at during 2007, which he describes as "hilarious, if short-lived." He graduated from Harvard College in 2007. It was at Harvard that Mason learned to multi-task, mastering the art of seeming to pay attention to professors while writing scripts for Mad Money. Mason has co-written two books with Jim Cramer: Jim Cramer's Mad Money: Watch TV, Get Rich and Stay Mad For Life: Get Rich, Stay Rich (Make Your Kids Even Richer). He is 100% responsible for any parts of either book that you did not like.

Mason has also had a fruitful relationship with Jim Cramer as his nephew for the last 23 years and will hopefully continue to hold that position for many more as long as he doesn't do anything to get himself kicked out of the family.

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