Jim Cramer: Round Up the Usual Bearish Suspects
NEW YORK (Real Money) -- That didn't take long. I am talking about clocking the speed between the point when the market started dropping and when the instant analysis came to state that the market run is now over -- that it is not too late to sell in May, and that the action in bonds was right, and that equities are toast.
The bull assassination was done so swiftly, and with such precision-like accuracy, that I thought the bears must have hired a professional hit man. There was no way they could have emerged that quickly by themselves after that huge up-streak and a triumphant run at new highs.
No one ever seems to conclude something far more benign -- something like, "The market has had a good run, that was terrific, but now we need more information in order for it to go higher." What's the matter with that bit of sanity? Or how about something like this? "You know there's plenty of good to buy if the bonds are right, or if interest rates are headed even lower."
Or maybe, "This bond market can self-correct. We will get to a point where sellers come in or mortgage rates come down and home inventory builds."No, all we got were deep pronouncements that it is over. Stick a fork into it. Or, "This market scares me" -- something all binary and frightening that can be taken back 3% down from here as if it had never been said. I am not being so blithe as to say, "I want the other side of the trade." Throughout this period, though, the algorithms, or algos -- short for funds where they let the machines think for them -- overreact to the same pieces of data. They probably don't mean to overreact, but the death of interest in stocks in general -- particularly from the one-time bedrock retail investor -- accentuates every move. Suffice it to say that it wasn't always like this. Comments like, "The market needs a rest," or, "We need more data," used to be standard and, yes, rational fare. Not anymore. I am strapping myself in for today's jeremiads based on "no growth with inflation," the tapped-out consumer, escalating tensions, tepid demand, shrinking net interest margin, lack of government stimulus and then the usual litany of failed policies of the Democrats. Round up the usual bearish suspects. Shocking. Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in stocks mentioned.
Editor's Note: This article was originally published at 6:16 a.m. EST on Real Money on May 15.
WATCH: More videos from Jim Cramer on TheStreet TV
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