This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

The Market
History Shows Panic Selling or Buying Is Not a Good Strategy
Facing Hard Task, Fund Managers Ready Trading Plans
The Argument Against Gloom
Cramer: Euro Markets Don't Tell the Whole Story
Sector Watch
Investors Will Be Seeking Safety, but Not All Will Desert Biotech
Software Firms Likely Will Forget the Third Quarter, Look to Fourth
Consumer Uncertainty Weighs on Wireless Sector After a Week of Warnings
Defense Stocks Aren't the Sure Bets You Might Expect

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.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for the network of TSC sites and serves as an adviser to the company's CEO. Nonstaff contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, he invites you to send comments on his column to jjcletters@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.99 0.00%
FB $94.44 -2.60%
GOOG $631.93 0.00%
TSLA $263.82 0.00%
YHOO $37.67 0.00%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs