Go down, stay down. Find a level. Stop the nonsense with the futures. Wash 'em out. Capitulate.
These are everyone's sentiments today as we see the same thing play out over and over on the downside. We can't even remember what the "victory" of being down "only" 300 was Friday given that here we are right back on the red-hot griddle touching lower levels again today.
The volume of bad news is so overwhelming that we forget that there have been whole markets taken down at other times by a collapse of an emerging market or two, and now we have several runs on the IMF bank a week! Ukraine? How did Ukraine get in trouble? Hungary?
Oh shoot, I bet Switzerland's in trouble.
Meanwhile, the only two things that matter to Main Street -- the election and the unemployment number -- aren't even coming into play.
Still, here's an odd one. It is getting more difficult to be as bearish as one would like. We have stocks like U.S. Steel (NYSE: X) (Cramer's Take) trading at 2 times earnings.
Doesn't mean it can bottom.
It does make a stock with a 3.47% yield and a decent balance sheet look attractive when it gets to 1.5 times earnings and a 5% yield.
Random musings: Many thanks to all the great people who came to New York for our conference Saturday. I hope you had as good a time as I did!
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.











Reader Comments (Page 1 of 1)
10-27-2008 @ 10:07AM
Bobby Knight said...
I read the news, I see the markets falling and falling then I see Cramer's smile and his pride in having picked a not-so bad stock. It is people like him who are part of the problem and the rest of the investors should boycott any and everyone of them. They are there to make money at our expense under any market condition. Our destiny is in our hands not in those of shark like him and the rest of the financial establishment
10-27-2008 @ 10:17AM
nick said...
What we want to know is what you are planning to do with your boy Obama getting into office, they going to let you run the Fed? Your carrying a lot of water for the CEO of GE CRAMMER. Pleas put a huge sell on GE stock, they are heading for a take over by fox.
10-27-2008 @ 10:25AM
Loving this price said...
Like most people Cramer and all the others fail to grasp the real root to the problem. Mass Corruption and abuse of company profits by directors and employees. Frontline (one of Cramer's favorites) pays an insane dividend compared to competitor OSG. Too many American companies piss money away calling it a tax write off while at the same time paying themselves too much. Frontline pays $300,000 to the CEO and the rest of the board. Any other compensation comes from purchased stock options that come in the form of dividends.. Since the company must make more money for the employee to make more money, the worker tries harder KNOWING it will come back to him in the form of a dividend. A lot can be learned from this approach. I as an investor will not invest in 99.999999% of the companies in this world. But, the .000001 I do, I know will beat this recession and put cash in my pocket along the way.. The problem our economy has is not debt.. It is the lack of profits due to embezzlers and thieves who work for a shareholder's company.. And they are all Embezzlers and thieves.
10-27-2008 @ 10:48AM
Dr. No said...
Cramer talks P/E ratios being low, well here they are.
Dow Industrial nil
Nasdaq Composite 17.71
Russell 2000 nil
S&P 500 19.13
All above historical averages (if not negative) and all while we are in a developing financial storm. Stocks are clearly way too high.
10-27-2008 @ 10:50AM
Beltway Greg said...
Things really aren't that bad. The majority of companies that have reported have beaten earnings. The problem? The unregulated hedge funds that made stupid bets on strong commodities and weak dollar
scenarios. This coupled with the misuse of leverage have actually put the disciplined investor in a very strong position. From this point the Dow could drop further but looking at it from a realistic standpoint. 14,000-8,000, 80-20% its higher this time next year. I cannot see the Dow dropping too much further. If it does we're in serious trouble and I don't mean the satellite radio type of trouble.
Beltway Greg
10-27-2008 @ 12:26PM
Iridium said...
The problem is that the majority of companies listed on the exchange run themselves by leveraging debt, not by making and selling a product.
Somehow it has become impossible to actually pay workers and stay in business.
No cpmpany should get a bailout. The only way to return the economy to a natural balance is to remove the bloated multinational corporation.
10-27-2008 @ 1:54PM
Loving this price said...
I am going to tell you right now... Companies meeting their earnings and warning of a bad outlook for next year are not realizing all of their losses on the quarterly or annual reports and have moved their money around to delay showing the loss on this statement. These people lie and decieve constantly. They are scared to lose their jobs and instead of getting down and making money, they choose to decieve and dodge the truth to continue to mislead investors. This whole system is full of parasites.. and being an investor in these companies is a fool's game. The only one making money are the people who are supposed to be trusted the most. The CEOs and directors, the same ones signing the 10-Q reports. American and European economies will continue to perish till faith in the system is addressed.. You people just don't understand it all to put it together. These CEOs and Directors need to be paid very little and given opportunity to get a taste of the profits.. Not guaranteed cash like a regular hourly employee. A hourly employee can decide to give themselves more of an expense account or go golfing and call it a business meeting.