By Roberto Pedone
PEWAUKEE, Wis. (
) -- According to Jim Cramer, investors who stayed negative on the markets in 2009
. He pointed to the amazing rise in stocks this year, and he said those who remained bearish were left in the dust.
Cramer mentioned there were three times this year when being too negative cost you money. He said the first inflection point was when the markets hit their lows in March. Cramer explained that his bottom-up analysis of the
brought him to the conclusion that the downside was just too limited.
The second inflection point came in May, when the market was hit with a flood of secondary offerings from the banks that drove the financial sector lower. Cramer said investors were scared into thinking the markets couldn't go up without the banks, so they sold in droves. This turned out to be the wrong move as the industrial and health care sectors picked up the slack left by the weakness in the banks.
The final example came late in October, when the market hit Dow 10,000. Cramer said that after a sharp pullback to Dow 9,600, investors sold stocks and moved their money into defensive asset classes such as U.S. Treasures and bond funds. Once again this move was wrong, and investors missed out on more gains.
Cramer's lesson to investors is to not get scared out of the markets in a panic, or to be afraid to get back into stocks at higher prices. He told viewers that the right move is to buy the dips, not sell.
Recently, Cramer found opportunity in natural gas takeover candidates, high-yielding dividend socks and health care stocks. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on
blog posts. (These blog posts might require a
: Cramer thinks some of the old market leaders are getting some new buyers. In a
Dec. 21 blog post
, he wrote: "I think that almost all of them are buys, but I would highlight
-- it was upgraded the other day by Goldman Sachs, and no one paid attention." The
: All week Cramer has been highlighting dividend-paying stocks as a way to make far more money than bank CDs or U.S. Treasuries. On
Monday's "Mad Money" episode,
he said that after cutting its dividend in half earlier this year,
now yields 3.9% and has lots of room to move higher. The
: Cramer outlined 10 clues that he thinks points to strength in everything from TVs to notebooks, smart phones to video games. On
he told viewers that new research shows business at
is getting stronger by the week. The
: Cramer has discovered some natural gas takeover targets off the heels of the
(CHK) fits the XTO mold. The
: Cramer thinks the health care sector is heading higher due to compromises being made in Congress to help pass health care reform. In a
Dec. 21 blog post
, he wrote: "Now that this morass is behind us, why shouldn't
get something akin to is historic multiple of 16 times earnings on its potential $6 earnings power? Okay, give it 14 times earnings and you still get to $84." The
: Cramer knows just how to play the markups in big-cap tech stocks. In a
Dec. 22 blog post
, he wrote: "I was waiting for these powerful moves. These are moves that need to be played and can be played with deep-in-the-money calls." The
-- Written by Roberto Pedone in Pewaukee, Wis.
(Editor's note: At the time of publication and/or original publication of his posts and shows, Cramer owned Altria, JPMorgan, BP and Chevron for his Action Alerts PLUS charitable trust.)
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