(RELATED: Cramer's Top Dividend Stocks)
“The only time, actually, that panic made sense, was to sell into the morass that was 2008 because the financial system was on the brink of the collapse,” Cramer said, adding it was a systemic crisis rather than a temporary one, so panicking made sense then. “Buying actually hurt you because stocks just kept falling and falling, so you never got a chance to unload the merchandise you bought on the dip at a higher price.”
Investors who took Cramer’s lead and sold in September 2008 avoided an almost 45 percent decline, he noted. But again, this is the only time that Cramer thought selling into panic was a good idea.
Most of the time, it’s a smart move to buy when people are panicking. In volatile or turbulent markets when things don’t look pretty, Cramer recommends being patient. Investors have to keep their head because there will likely be a better momentum to sell. The right move is almost always to buy into weakness, so he suggests keeping that mind the next time there’s a pullback.
@MadMoneyOnCNBC on Twitter
"Mad Money" on Facebook
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the "Mad Money" website? firstname.lastname@example.org