Avoid Bear Stearns ( BSC) and YRC Worldwide ( YRCW), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
Bear Stearns director Paul Novelly recently sold shares of the investment bank in the open market, a move that does not inspire confidence, Cramer said. Similarly, Cramer is "worried" about YRC, which reported it expects an $800 million fourth-quarter charge related to a decline in value of several companies it purchased in 2005. "I know it's a non-cash charge, but look at that chart. That looks like Kilimanjaro from the wrong side." Stay away, Cramer advised. Cramer's overall forecast for 2008 was similarly pessimistic. "Not great," he said of the outlook. "We are still not to the point where oil and gas are big enough in the S&P 500 that they can turn the S&P." Don't count on the Federal Reserve for a bailout, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday. Cramer had a message for those relying on the Fed for help: "They're not your friend, so stop trying to find ways to make them your friend." Cramer compared the Fed to the Soviet Union and compared those with faith in the Fed to "little Kremlinologists." "These guys are your enemy. ... Just forget about it. Just presume they're going to do the wrong thing," Cramer continued. Several market commentators have been looking at Africa as an investment opportunity, Cramer said, but in light of violence in Kenya related to its recent election, Cramer cautioned investors. "We forgot election risk. ... Suddenly in Kenya it looks like that electoral college isn't kicking in." Cramer said he had been lulled into a sense of security about Africa but is now taking a more cautious approach.