EMC Freak-Out

The domino effect hits when one of the faves tanks.
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EMC

's

(EMC)

freaking everybody out. That's what happens with these much beloved names. EMC may not have had the single greatest quarter ever registered, but it certainly wasn't a bad quarter.

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And now the second-day thrashing is making people rethink the high-growth, high-multiple world.

It's always like this when one of these faves tanks. People say, "If they can take EMC out and shoot it, what will they do to . . . ?" and then you can plug in any names you want.

So you get this kind of domino effect: "Why is

Broadcom

down?" "Because of EMC." "Why are people selling

Razorfish

(RAZF)

?" "Well, if EMC is down, they can kill Razorfish."

I know that must seem irrational.

But traders can be irrational if they think they're about to lose money.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.