When countries float bands, they devalue soon after. Devaluation is bad. When the news comes out, usually the damage is done. It is right to focus on Brazil; it is wrong to let it dominate your thinking. Brazil will continue to deny negatives until they happen.
There, I pretty much wrapped up that one. The next question is: When does it stop coming down?
Too hard for this guy. I like to buy what I like, especially when stuff is down big. Do I want to buy some company that does a big chunk of business in Brazil? I don't think so. I know the drug stocks have been clocked, and I like them. I know that some tech is doing quite well, and I am buying that.
I am not selling a ton of things because I like what I own and I have cash. And I am not selling
because I don't own those stocks!
Anyway, back to the wars. My refusal to freak out about Brazil has to do with my failure to freak out about Thailand and my failure to freak out about Indonesia and my failure to freak out about Mexico. If freaking out had made me money, believe me I would be the first to freak out.
James J. Cramer is manager of a hedge fund and co-chairman of TheStreet.com. 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 by sending a letter to TheStreet.com.