RealMoney Radio Mailbag: Jaded Money

A listener learns Cramer's take on why Thursday's terrorism news did not adversely affect the market.
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Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

Why didn't the market get killed on yesterday's terrorism news?-- Geoff from New York

Jim Cramer

: The market didn't get killed because traders and investors have come to accept terrorist threats as part of regular life these days. In addition, overly aggressive traders may have gone a little too far shorting early in the morning, setting us up for a bounce once everyone figured out nothing really changed.

Is it true that over the long-term, index ETF's like the S&P 500 SPDRs (SPY) - Get Report will outperform the equivalent mutual fund?-- Krish

Jim Cramer

: Over the very long-term, since index ETF's tend to have lower expenses than mutual funds, they have a better chance of outperforming. However, buying ETF's requires trading commissions, so if you regularly add to your holdings the lower expenses will be offset by higher brokerage expenses. So in the end this issue is basically a wash.

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At the time of publication, Cramer had no position on any stocks mentioned.

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