Cramer Special: The Fed's on Your Side Now
TheStreet.com - Wrong!
The cut in rates today signals a dramatic end to the bear market of the last nine months.
By James J. Cramer
It has been a brutal, hard, reeling bear market. But it is now over. The rally today is for real and all dips can be bought because the Fed will be there to backstop you. Bold words, I know. Extremely bold words. However, this is what happens when the Fed eases. Everything works at first. You are just trying to figure out what works longer-term.
blah blah blah blah blah
A 50-basis-point cut is a signal that the Fed is not going to let this economy go into a recession.
blah blah blah blah blah
"We just finished a vicious nine-month bear market. It was one of the worst ones I have ever seen. But it is over and you can buy stocks, any stocks. I wish you would not buy tech, because the textbooks say that you buy financials and retailers. And, by the way, great timing."
The textbooks say buy financials. How nice!
Just read the article from Cramer.
I love it.
It tells me the bears are right.
All this talk about "don't fight the FED" because you will always lose. When EVERYONE believes something it stops working. Everyone hopped on the "gorilla game" theory last year. Now everyone is chanting "Dont fight the FED" when these same people fought it tooth and nail all thru the slide.
Recommending Financials at near-peaks, with an economy on the brink is simply absurd IMO .
All this talk from the bulls that the bear is over. Optimism from the analysts, especially in sectors that have not gotten hit yet, telling people to buy the last remaining things that are up.
American Express. I have not looked at the chart but I would bet against it. I do want to look at Visa and MC now. I bet transactions drop through the floor and defaults rise. American Express can probably do better, but I bet corporate travel & expenses will take a huge hit as well.
Greenspan "WILL NOT LET A RECESSION HAPPEN". WOW, a nice emphatic statement. As a bear, I love to hear that kind of talk. At what cost? Can he really stop it even if he lowers rates another full point tomorrow. Consumer debt is at an all time high. Des he want to induce more borrowing?
Something smells quite funny to me right now. If the market does not get a lasting bounce on the next rate cut, it is burnt toast.
So, I say thanks but no thanks Cramer.
Betting against the floating wingless pigs, pumped up on nothing more than hot air, is simply a better strategy IMO.
Mike, are you changing your investing style here?
We just heard it from the master. LOL
I think I will wait for the book "Investing by TextBook. These simple do's and don'ts will make you a million" by Cramer. In the meantime, lets see how it works.
From the Dark Side.
(How did I do Earlie?)
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