This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: Downed Plane Was a Rubicon

Stocks in this article: RDS.ABP

NEW YORK (Real Money) -- The market initially got it wrong. That's how I feel in retrospect about the downing of MH17 over Ukraine. That July 17 event I now think set into motion a lot of what caused last week's selloff and could cause more pain the weeks ahead.

It didn't hit me until I read last week that Ben van Beurden, the charismatic CEO of Royal Dutch Shell (RDS.A), described the crash as the event that could be a "bit of a game changer" from "a trade and investment perspective."

First, it was on the conference call of a terrific earnings report and the stock went higher, which threw me off. Initially, I dismissed it. But then, when I mentioned it to BP (BP) CEO Bob Dudley, he was pretty matter of fact that it's a big deal. Considering that BP's partner Rosneft pumps roughly a million barrels of oil a day from Russia, much more than any other company, the game-change comment seems far more than just a throwaway.

In reality, it represented a change of sentiment along so many measures of business. First, because Vladimir Putin apologized for nothing and seemed hardened by the incident, one has to presume that it would mean nothing to him to turn off the natural-gas spigot to Europe.

It is inconceivable to me that the continent wouldn't almost immediately be thrown back into a recession if that happened. It's one thing to be cold. You can put on a sweater. It's another thing to have shut down plants that use natural gas, and given how it is the fuel for much of industrial Europe these days, shutdowns would seem likely.

Europe cannot sustain a business interruption. It would either have to come to the peace table and say to Russia you can have Ukraine, something that at least in our president's eyes seems to have a real historical parallel to the appeasement of Germany when it came to the Sudetenland of Czechoslovakia, or it would put through sanctions that at another time would mean, let's just say it, war. You have any other answers? I know I don't.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs