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NEW YORK (
TheStreet) -- Check your emotions at the door and don't fall in love with your stocks, Jim Cramer proclaimed to his
"Mad Money" viewers Wednesday.
He was responding to ferocious criticism regarding Tuesday's recommendation to take profits in
Arena Pharmaceuticals(ARNA - Get Report).
Cramer said emotions are ruling the day in today's markets and that goes against everything he's taught on "Mad Money." Stocks are only pieces of paper linked to companies, he reminded viewers, and are not worthy of any affection. Good investors are always skeptical and must always challenge their reasons for owning a stock.
Just as Cramer always says that "no one ever made a dime panicking," he also preaches the opposite, that "no one ever got hurt taking a profit." Stocks are still part of the overall market, which means even if they're terrific they can still go down. The holy grail of investing, said Cramer, is taking profits and playing with the house's money, a proposition where you simply can't lose.
"Diversification and dividends are your only friends," Cramer concluded, as gains in a market like this one are getting harder and harder to come by.
In the "Executive Decision" segment, Cramer once again spoke with Vivek Ranadive, chairman and CEO of
Tibco Software(TIBX), the data analysis company that's helping retailers and enterprise make real-time sense of their "big data."
Ranadive said that while it may be a slow slog for most of technology it's "the best of times" at Tibco. He said that even in ailing Europe business is up 20% and the company is making big inroads into banks, sports retailers and drug companies across the continent. According to Ranadive, Tibco software is a "must have" for business.
Ranadive explained that Tibco helps companies manage their social network, their customers. The company's real-time analysis software allows customers to capture, expand, engage and monetize their customers in ways never seen before. Loyalty programs are one hot area for Tibco where it manages the purchase history for 260 million customers, allowing companies to up-sell and cross-sell while customers are still shopping. In short, Tibco helps make customers happy, said Ranadive.