Rule No. 25: There's Always a Bull Market
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I like to end every television and radio show I have with this signoff: "There is always a bull market somewhere, and I will try to find it for you." I say that because it's true.
Something is always working! Maybe it's gold, so you buy best-of-breed Newmont Mining (NEM). Maybe it's oil, so you buy some Halliburton (HAL). Maybe it's the chemical complex, so you pick up some Dow Chemical (DOW). I've seen moments where the only stocks in bull mode were in your supermarket or your medicine chest, stocks like Anheuser-Busch (BUD) and PepsiCo (PEP).Now, I know that might mean you have to do some trading. It might mean that you may have to look further and harder than your time and your inclination allow. That's OK, too. What matters is that you don't simply default to what's in bear mode because you are time-constrained or intellectually lazy. This is not just a criticism of do-it-yourselfers. Many professionals stuck with the PMC-Sierra (PMCS)/ Applied Micro Circuits (AMCC) complex or the Novell (NOVL)/ Sun Microsystems (SUNW) leg irons long after they should have. If they looked around, they might have spotted the bull market in oil, and bought something as simple as Exxon Mobil (XOM) or as complex but rewarding as Ultra Pete (UPL). Just remember:
There is always a bull market somewhere.I will always end my shows with this tag line because it is vital for me to get you to think more opportunistically than the average investor does. Oh, and by the way, it has the added advantage of being true. For 25 years there has always been a sector that works. You just have to find it. I know it, and I am honored if you will let me help you.
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once||4.||Buy Damaged Stocks|
|5.||Diversify to Control Risk||6.||Do Your Homework|
|7.||Don't Panic||8.||Buy Best-of-Breed|
|9.||Defend Some Stocks||10.||Don't Bet on Bad Stocks|
|11.||Own Fewer Names||12.||Cash Is for Winners|
|13.||No Regrets||14.||Expect Corrections|
|15.||Know Bonds||16.||Don't Subsidize Losers|
|17.||No Room for Hope||18.||Be Flexible|
|19.||Quit When Execs Do||20.||Patience Is a Virtue|
|21.||Be a TV Critic||22.||When to Wait 30 Days|
|23.||Beware the Hype||24.||Explain Your Picks|
|25.||Find the Bull Market|
|Check back for more of Cramer's Rules|
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