They're baaaaackkkkk! One week after the single most damaging moment in momentum investing's recent history, the proxies for growth are back, and it's like nothing has even happened.
Two weeks ago, when I spoke at a
conference, I talked about a bunch of the best momentum names I liked. I didn't say they would be up immediately. In fact, I told those people that my next call was a sell call. "Take something off the table," I urged.
Of course, the press coverage of the event highlighted that I'd said these stocks would never go down or some other claptrap that everyone who reads my column knows I would never say.
But, as I said over and over again, I don't like doing it. I just don't want the money taken away because my experience has been that after every one of these selloffs, these stocks come right back. They're like really-hard-to-kill vampires. They don't even respond to stakes into their hearts!
Believe me, if I had my druthers I would love to like the stuff owned by that
guy who quit
Oakmark yesterday. Shoot, that stuff is so cheap, so easy, so low-priced, so easily understood, who wouldn't want to own it?!
But that's not the way the market works. That's not the way money management works.
I want to keep my job. I like it. So I play. If I didn't have to play, I wouldn't. But so what? That's just some sort of unrealistic construct that doesn't mean jack. That's why we have to listen to
Matt "Nightstalker" Jacobs
and buy the super-vampires.
Because there are no Buffys in this game.
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