Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
He said that while it may seem like everything that was good is now bad and everything that was bad is now worse, there are a few silver linings. Cramer reminded viewers that, historically, being optimistic has been a winning strategy, even if that optimism is being very challenged at the moment.So what cons are the markets worried about? The most obvious is the fiscal cliff, something the markets were hoping would be solved with new leadership in Washington. But now that the president is still the president and Congress is likely still gridlocked, is there any hope? Cramer said the Republicans have to know they must strike a deal since not striking one has already cost them the White House. Then there are disappointing earnings. Cramer said earnings are always a game of expectations and expectations are still too high given the environment. Take Starbucks (SBUX). The company was trading in the low $50s when it reported over the summer, when expectations were too high. Shares immediately plummeted into the mid $40s. This week, the company reported again and expectations were in line and shares rallied back into the low $50s. There's no reason to panic, said Cramer, prices just need to be readjusted. Europe is another con against the market, said Cramer, but here, too, that's old news. Perhaps more important than a sagging Europe are hopes of a resurgent China, which might happen under new leadership in the coming year. Hurricane Sandy put a damper on the markets as well, noted Cramer, but after the devastation comes rebuilding. Once people have their power turned back on and get back to work, things will start flowing again in the Northeast. Cramer said the markets are clearly ratcheting down ahead of the fiscal cliff, but soon there will be capitulation, and that will be the time to buy, buy, buy.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV