Anyone approaching the month of September long will feel pressured to sell given the history of the month. We all know that September's been brutal for years in markets that are up, and we know that everyone's expecting bad things to come in. We have now read a gazillion articles about how it is impossible to have a real rally based on earnings with no sales, and each article sounds incredibly compelling.
Of course, you could have written the same article for the last 3,000 points, but that's OK too.
We cannot expect to see this story: "Can you imagine how much money these companies will make when sales get better?" The articles are all static -- there can't ever be more sales because everything is sluggish and anemic and the consumer's not borrowing enough and the stimulus will never hit and the Chinese are the only people buying, anyway.
So what that as recently as 2007 we had companies expanding rapidly, not in China but in Europe, because there was so much business to be done, and that India and Brazil represented equal if not better opportunities than China?
It is almost as if we never expect anything to spring back ever. But things will rebound -- even the impossible things.
Consider Radian (NYSE: RDN) (Cramer's Take) and MBIA (NYSE: MBI) (Cramer's Take). Here are two with at least a dozen obituaries -- I think I attended the funerals, definitely the wakes.
But now they are flying high, getting numbers bumped, springing back to life.
Things can spring back to life, even things that aren't supposed to.
So why should I think that this market as a whole can't triumph over these worries?
Again, I believe that September will bring a contained short selloff like the previous selloffs. Sure, that can be frightening.
But after this run, we deserve some fright. Just remember things have a habit of coming back.
So don't be too negative.
Jim Cramer is co-founder and chairman 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.
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Reader Comments (Page 1 of 1)
9-01-2009 @ 11:02AM
G said...
All this wisdom from the Street's shill poster boy
Here's more valuable advice:
a) Watch what the masses do
b) Do the opposite
Considering Krammer (pun intended) is talking to the masses, Caveat Emptor!
9-01-2009 @ 11:08PM
Charles Carter said...
Wall Street brokers have to keep that rosy picture going. Lock all the windows on wall street.
9-01-2009 @ 1:13PM
stonewall1947 said...
I was once a Crammer fan , but no longer , as he has sold out on his on beliefs. He knows at one time he could make a stock go up or down by talking about it on the air. He could not resist the temptation to use that power.
9-01-2009 @ 1:15PM
cul897 said...
After they transferred most of the saved up wealth out of the people, printed up an a$$ load of debt for them, now the hedgefunds are in BULL frame of mindset and ready to see the markets run back up the other way. What retail investor out there is not or should not, be extremely offended that now after over a very lengthy time of watching their savings put to work by investment, turn to complete crap, only to now have a long long journey to get back to where they were 2-3/4 years ago? Including paying new capital gains taxes along on that journey?
Fuk you wallstreet pumpers! I lost $90K and have since been forced to eat what I had left through cost of living consumption. And Fuk your taxes too! This to you crafty financial tutes and hedgefunds and the government. Stick it up your a$$! I hope you go bk like I did hoping it was going to turn around, gonna turn around!!! then finally forced out because of the shorted economy you purposefully caused to take up the people's saved up wealth. Go get on your knees in front of obama. Maybe he will print you up some more fiat so you won't have to spend what you stole from the people.
No, you knew the baby boomers nesteggs were fat, that they had inheritance sitting in investments accounts and you raped them. And you damaged the markets too badly in your greed to take it. This includes consumer's and their saved up wealth. You knew the time was fat for the raping you gave retail investor and the consumer that had to spend their saved up wealth in your bear economy. You the American people didn't see what you did and how you did it. Hope you choke on your greedy theft.
9-01-2009 @ 1:34PM
cul897 said...
"Ask not what your country can do for you, but what you can do for your country!"
No need to ask what you can do for your country. They, (corporate and government), just suck us dry. Thanks for the memories.
9-01-2009 @ 2:09PM
ebrandler34 said...
I don't know what has happened to the "bold" Jim Cramer that broke with the establishment in 2008 to sound the alarm for retail investors.
Sometime between February and April (this year), he must have been fitted with a saddle and bit by either the Obama administration or Jon Stewart. Pretty much since then he has morphed into an organ-grinding chimpanzee for the establishment.
It's sad, because he is both entertaining and intelligent, as well as passionate. Can we get a posse together to rescue his "stones", which are probably proudly displayed on Robert Gibbs' mantle-place?
9-02-2009 @ 2:06AM
Ynot said...
Lets look at this logically. We have China, Germany, France, Japan and the good old U.S.A. all saying that manufacturing is improving, but yet, who is buying? The government supposedly made a profit from the bank bail outs, but today the bank stocks got hit. So much for those profits. Wall Street keeps saying home sales are improving, but stay mum on commercial property. Cash for clunkers help sales for Ford, Toyota and Honda, yet bailed out and bankrupt G.M. and Chrysler have drop in sales. Unemployment is at 9.5% and if you count the people that have supposedly given up looking for work and those that are working part time that use to have full time jobs the rate is more like 16% unemployment. Banks are not having to report under mark to market and are holding off on forclosures to keep the residential housing market from sinking further. The government is buying up toxic assets with money pulled from thin air. And with all this wonderful news the stock market is up 50% from March. So much for market fundamentals!!!