Smarter Money: Diversification Means Your Stocks Can't All Go Up at Once - TheStreet

They can't all go up at once. Those seven words are the staple of pretty much every pro out there, and you better get used to them if you are going to play in a diversified way.

All day Tuesday people emailed me and asked, "What is wrong with

Constellation Energy

(CEG)

?" or "What's gotten into

Fluor

(FLR) - Get Report

?" or "Oh, no, what do we do with

Pfizer

(PFE) - Get Report

?"

I don't answer individual emails about specific stocks, but I have to tell you that you can't sit there and fret every minute about every position. It is a sucker's game. Constellation is selling off because traders are worried about how California's new regulations are going to hurt power providers. Fluor is being hurt because people feel that power-plant building might be stifled. Pfizer? Pfizer is a defensive stock that struggles to rally when people want stocks like

Alcoa

(AA) - Get Report

and

IBM

(IBM) - Get Report

.

Facts of life:

If your portfolio all goes up at once, I can almost guarantee that you will have horrendous days, if not horrendous years like so many had last year.

I am not saying, "Don't sweat it." If I thought the power crisis were over, I wouldn't be buying Constellation or Fluor. If I thought inflation were raging, I wouldn't be buying Pfizer.

But neither is happening. So I just do nothing. Nothing wrong with doing nothing. Sometimes it is the best thing to do.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. At the time of publication, Cramer was long Alcoa, Constellation Energy, IBM and Pfizer. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to

jjcletters@thestreet.com.