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

Cramer's 'Mad Money' Recap: Senseless Stock Sales (Final)

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- "Don't sell the best assets out there just because some of the worst assets are heading lower," Jim Cramer told the viewers of his "Mad Money" TV show Thursday as he urged investors to not sell their stocks on fears of a U.S. debt downgrade.

Cramer said such a downgrade won't be Armageddon for stocks, and the missed opportunities might be a whole lot more painful.

According to Cramer, a U.S. debt downgrade will cause investors to sell U.S. bonds and thereby raise interest rates, and it will likely send the U.S. dollar lower. He said it will also wreak havoc on the bank stocks, which are already the worst performing sector. But beyond that, he said, stocks will largely be unaffected.

He said it "doesn't make sense to sell stocks of companies that have great balance sheets just because our government has a terrible one."

Cramer said selling stocks like Google (GOOG) would have cost investors 50 points today as the Internet search giant reported stellar earnings.

Selling stocks like Sanofi-Aventis (SNY) , a stock which Cramer owns for his charitable trust, Action Alerts PLUS , also makes no sense. Sanofi yields 4.5%, far better than any dividend, and its earnings are not affected by the U.S. debt crisis, said Cramer.

Cramer also noted that Conoco Phillips (COP) announcement that it's breaking itself into two in order to unlock value is another opportunity investors would have missed had they sold their stocks. Even without the breakup, he said, Conoco still yields 3.6%, also better than treasuries.

Cramer said the markets might be choppy until a debt ceiling deal is reached, but the opportunities are just to great to miss.
1 of 4

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
ARCC $15.95 -0.19%
IMAX $37.40 -0.03%
LULU $62.57 1.10%
NLY $9.96 -0.60%
POT $27.28 -0.18%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs