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NEW YORK (TheStreet) -- What happens when safety is no longer safe? That was the question Jim Cramer posited to his Mad Money viewers Thursday. Cramer said the averages may not show it but the markets were again in turmoil because big money managers are once again shifting direction.
Throughout much of 2013, the momentum stocks were all the rage, Cramer reminded viewers, but all that changed in February when the momentum slowed and money managers fled en masse, leading to huge declines of 30% or more for any fast-growing company.
Those managers fled to safety stocks, stocks that offered decent growth along with dividends and sometimes even slight upticks in their share prices.For the momentum stocks, the pattern was clear: report your earnings, see a brief pop in your share price, followed by a vicious decline. That was until today when Yelp (YELP) reported and saw actually strength in its shares. Why the sudden change? Cramer said it's because Yelp shares have already fallen from $101 to $55 a share, making them a good value. With the flood of new IPOs finally subsiding, money managers are once again willing to roll the dice on the likes of Netflix (NFLX) and Workday (WDAY). At the same time, they're now fleeing Clorox (CLX) and Hershey (HSY).