Stocks surged Thursday, with the Dow turning positive for the week, amid a dovish statement on bond-market tapering from the Federal Reserve.
Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks talked about selling some profitable stock investments with the three indices back in the green and why the Evergrande Capital crisis can best be described as a total "house of cards."
Salesforce.com: Buy Or Sell?
Salesforce.com (CRM) - Get salesforce.com, inc. Report rose Thursday after the customer-relations-management software provider boosted its 2022 revenue guidance ahead of its annual investor day conference.
Cramer said now that we have this kind of uptick in the market even though we're still oversold it's imperative that investors raise a little bit of cash.
"I'm not saying we're dangerously low on cash. We saw some vulnerabilities in our [Action Alerts PLUS] portfolio and we're addressing those," he said.
Cramer also suggested it was time to do some profit taking in business software provider Salesforce after it raised its full-year 2022 revenue guidance to between $26.25 billion and $26.35 billion.
Shares of Salesforce at last check were up 7% to $277.19.
Chinese authorities have told local officials to prepare for a potential demise of heavily indebted property developer Evergrande, The Wall Street Journal reported Thursday.
Beijing is asking local officials across the country to prepare for a ‘possible storm’ and told them they should only step in at the last minute to prevent spillover effects from Evergrande’s demise.
Cramer said Evergrande was a "tactical mistake" by Chinese President Xi Jinping and foreign investors are likely to lose a lot of money.
"The property sector is 30% of their economy. There are some really really rich people in it and he wanted to humble the rich. But what happened here is this company has so much debt that he almost took life savings away from millions of people," he explained.
Cramer said Xi has guaranteed the wealth management and the apartment money Evergrande owes back to investors. "But everyone else is going to lose money, particularly foreign investors."
"He [Xi] probably didn't realize this is a total house of cards while he was trying to punish the billionaires. He's trying to humble sector after sector after sector which is why I'm concerned about Estee Lauder (EL) - Get Estee Lauder Companies Inc. Class A Report because Xi may or may not try to do the same with the cosmetics sector," added Cramer.