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  • stocks for skittish investors;
  • how retail investors want to jump back into stocks; and
  • GE's rebound.

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It's Not Too Late to 'Get in the Pool'
Posted at 3:08 p.m. EST, Friday, Jan. 14

This market is driven by fear, but it's not the typical fear that drives a terrific bull, rather than the greed that has it running into the slaughterhouse. It's the fear that everyone has of being the last guy in the pool, of looking ridiculous to their customers, friends or family. They just can't come in "up here," and that's why we don't have a lot of non-institutional participation.

Worse, judging by the horror stories, many people seemed to have been hiding in leveraged municipal bond funds or tax-exempts of the dubious variety because they so feared stocks. They are "all in," but they are in the wrong pool!

By the time they give up and get in, the water will most certainly not be fine.

To me, the trick for people who fear it too much is to at least use the price breaks you get in high-quality growth stocks. Ever since Nike ( NKE) and McDonald's ( MCD) have been crushed off their last bits of news, I have said that playing those two with deep-in-the-money calls makes sense. Now they are starting to roar, but it's not too late.

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Doesn't satisfy you? Then how about Southwestern Energy ( SWN), an ain't-missed-nothing-yet stock, because it was one of the worst performers in the S&P 500 last year. Or if you want something tech that hasn't moved yet, I am blessing Micron ( MU), like many others on the site (and I like that, because it is being blessed both technically and fundamentally).

Fear of being last is keeping people out. These same people will capitulate at higher levels. It's certainly worth being in the market until they do.

Random musings: People are asking me if I am backing away from gold after this dramatic fall. Why would I do that? I think gold's a currency that is a must-own in a time when the euro and the dollar slug it out for ugliness, and it is a metal that is in tremendous demand globally as insurance against financials. You don't stop getting insurance when it comes down in price.

At the time of publication, Cramer was long SWN.

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