European Markets Don't Tell the Whole Story
To talk about stocks so soon after this disaster will be considered wrong by many, and I don't blame anyone for feeling that way, but so many of you have asked for advice that I would be remiss not to offer my views on the subject.
So here goes: If the European markets are any indication, we are going to see severe disruptions in companies that are travel- and leisure-oriented come Monday. The airline stocks in Europe traded at 10-year lows on Friday.
I can imagine the same thing happening in our country on Monday. Insurance and defense stocks rallied, which, while suggesting a knee-jerk reaction, makes sense for the trading-inclined.Larry Kramer, a friend who edits CBS Marketwatch.com, has urged everyone to buy stocks on Monday to show the terrorists that they are not going to win. I agree with that sentiment. At the same time, I know that I have to be true to what I would do as a money manager, and I know that performance, not patriotism, is what I am paid to deliver. Patriotism is personal and financial decisions are personal. I cannot urge you do something that I would not think is good for you, and I recognize that any attempt to try to move the market in some direction, any direction, without the fundamentals, will not stand and could hurt you. That said, it would be fantastic if all the possible bullish factors would converge -- if the fundamentals would find their footing, if values were created by limited panic-selling, if buybacks and a Fed ease occur -- and a terrific, patriotic rally, ensued. Right now, from the looks of Europe, that's not how it's going to happen. But I would not be surprised if things worked out better in the U.S. than they did in Europe Friday.
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
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
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
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 Plus 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