Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
He said that while it may seem like everything that was good is now bad and everything that was bad is now worse, there are a few silver linings. Cramer reminded viewers that, historically, being optimistic has been a winning strategy, even if that optimism is being very challenged at the moment.So what cons are the markets worried about? The most obvious is the fiscal cliff, something the markets were hoping would be solved with new leadership in Washington. But now that the president is still the president and Congress is likely still gridlocked, is there any hope? Cramer said the Republicans have to know they must strike a deal since not striking one has already cost them the White House. Then there are disappointing earnings. Cramer said earnings are always a game of expectations and expectations are still too high given the environment. Take Starbucks (SBUX). The company was trading in the low $50s when it reported over the summer, when expectations were too high. Shares immediately plummeted into the mid $40s. This week, the company reported again and expectations were in line and shares rallied back into the low $50s. There's no reason to panic, said Cramer, prices just need to be readjusted. Europe is another con against the market, said Cramer, but here, too, that's old news. Perhaps more important than a sagging Europe are hopes of a resurgent China, which might happen under new leadership in the coming year. Hurricane Sandy put a damper on the markets as well, noted Cramer, but after the devastation comes rebuilding. Once people have their power turned back on and get back to work, things will start flowing again in the Northeast. Cramer said the markets are clearly ratcheting down ahead of the fiscal cliff, but soon there will be capitulation, and that will be the time to buy, buy, buy.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV