When reading business news articles, it's important to look at both sides of the story, Jim Cramer said on TheStreet.com TV's Wall Street Confidential
Web video Friday.
The Wall Street Journal
was "bashing" some recent private-equity deals on its Money & Investing front page this morning, but a journalist's "mindset is to write the story as if it's catastrophic," Cramer told George Moriarty, executive editor of
and host of Wall Street Confidential. "A lot of people's jobs are dependent upon them being faux cautionary."
article, titled "Boom Aside, Not All LBOs Look So Hot, is a story that would make you sell the opening, because you would say maybe the private equity put is going away," Cramer said.
Meanwhile, according to newsletter
, there were 1,011 announced U.S. deals in 2006, and the disclosed dollar value was $315 billion, which represents about half of those LBOs.
Without knowing this number, a retail investor would think the article is "devastating," Cramer said. This is why whenever Cramer reads about the stock market, he looks at the bylines "because it's a hit ratio," he said. "There are some people that are better than others."
The author of the aforementioned article, Greg Zuckerman, for example, is a writer who has a history of being negative, Cramer said.
"I always urge people to read the flip side of an article," he continued. "If there's an article that says interest rates are going up, look at the idea of the piece of paper that is going up."
Cramer said he wants people to recognize that stories are written for reasons and "they are not reasons to make you feel like you should be opportunistic."
When Moriarty inquired about whether there is a sector we should be watching for some potential M&A deals, Cramer said the market is not down enough yet. "I don't think there is a deal that would be motivated by these declines," he said.
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