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Why Cramer Doesn’t Hate This Market

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CNBC

As U.S. stocks eased off their worst levels to end mostly flat Monday, the stock market managed to remain around four-year highs. Nevertheless, Jim Cramer noted that many on Wall Street still object to the rally.

“Right now we’ve got a first class hate going against this market,” the “Mad Money” host said, adding that light volume, reports of subpar corporate revenues and an uncertain political environment have left some investors worried about the sustainability of the market’s gains.

(RELATED: Cramer's Top Dividend Stocks 2012)

Cramer doesn’t hate this rally, though. During his more than 30 years of investment experience, including time spent as a hedge fund manager, Cramer has experienced this kind of market environment before. As he explained in the video, he almost missed out on a sizable rally because he had “hated” the market. He hopes investors will learn from his experience and give this market more thought.

“It’s real easy to sound smart, to think you know the history, to get a real good sense of what everyone else is looking at. But it’s more important to recognize that when everyone hates a rally and no one believes, that might very well be a sign to buy, not sell,” Cramer said. “So here's a novel idea, stop trying to sound so darned clever and instead focus on trying to make some money.

“Hated rallies don’t stay hated. They tend to gain adherents and the trick is to recognize when that starts happening before the adherents overwhelm the sellers and the sidelined players become anxious to get in and have seller’s remorse.”



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