TheStreet.com TV Recap: Viewing Stocks Through a Fed Prism
One of the things that Jim Cramer has spent a lot of time thinking about is not necessarily the fundamentals of companies -- although he certainly wants to know them -- but how they will be interpreted in the stock market, he said on TheStreet.com TV's Wall Street Confidential Web video Wednesday.
A lot of people, particularly in the conventional media, are trying to pin him down on whether he'll be right in the next 48 hours or the next two weeks, Cramer said. "One of the things that I've tried to do is impart lessons from the mistakes that I've made, with the idea that the next people won't" make the same ones.
Cramer said that in 1998 he found that the fundamentals before and after the Fed's emergency meeting remained unchanged. However, stocks went up dramatically "because the same pieces of data that were being reported before the Fed action were subsequently viewed quite differently after the Fed action.
"What I'm urging people to do is understand the psychology [of the market] and not to fight it," he said.Although people are coming in from the sidelines, every day there are new subprime problems, Cramer said. "I'm ceding the notion that things aren't better," he said.
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