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NEW YORK (
) -- Your biggest enemy is not Europe or China or even the Fed, Jim Cramer told his
TV show viewers Monday. The market's biggest enemy right now is your fellow shareholders.
Cramer explained there are countless types of shareholders hitting the sell button right now, not the least of which are those who never wanted to own stocks in the first place and were simply buying them for their high yields as compared to bonds. These shareholders felt good with 4% yields, he said, but now that yields have fallen back to 3%, the protection from big dividends isn't enough to keep them from selling.
Then there are the hedge funds that are being forced to sell thanks to increased redemptions. These fund managers were betting that the worst was over, and their predictions have just been plain wrong, Cramer added.
Other investors were betting on a global recovery, one that relied heavily on China, India, Russia and Brazil. But here too, these early predictions of a turnaround never materialized.
Of course, there are also the
watchers, said Cramer, and those investors feel there's no safe place to hide.
Cramer said investors' only friends at the moment are those who feel the worst is now over and aren't selling because they fear they won't be able to get back in at a better price. Even these investors aren't yet ready to start buying, said Cramer, but at least there is someone waiting in the wings to begin buying just as soon as this latest interest rate scare is behind us.
Invest in America
It may not seem like it, but the U.S. still has the best economy in the world, Cramer told viewers as he kicked off a new "Invest in America" series of recommendations based on companies that are making the grade right here at home. He said no talk about the U.S. economy would be complete without discussing the energy boom, which is why he chose to start with the oil industry.
Energy will be huge in the coming decades, as low-cost energy will be the offset our country needs to counter higher labor costs and tougher environmental standards in the global economy, said Cramer.