NEW YORK ( TheStreet) -- "Don't repeat my mistakes," Jim Cramer told the viewers of his "Mad Money" TV show Thursday. He said now is a great time to take profits and not the time to sell everything. Cramer said it certainly seems like everything is going wrong at the moment, with unemployment claims sharply higher, China's economy slowing down, tech stocks hitting a wall, gold prices lower, Spain collapsing, taxes rising, QE2, and of course, Libya. But, he said, that doesn't mean it's time to head for the exits and sell your entire portfolio. Instead, Cramer said it's a perfect time to take profits, and even take a loss on the stocks in your portfolio that you might not like very much anymore. He said no one ever lost a dime taking a profit, and in the case of losses, your first loss is always your best loss. "Don't even up even more," he said. "You can always buy these stocks back at lower prices," Cramer reminded viewers. So why not sell everything? Cramer recounted how in the 1990s, he held onto the stock of American Stores, purveyors of the old Acme supermarket chain. He said for years he held onto American Stores, hoping for a turnaround, or a takeover, that never came. That was, of course, until two weeks after he closed out his position in the middle of a panic just like the current one going on now. Cramer told viewers that surprises like American Stores can happen, and that's precisely why investors should never get out of stocks completely. All stocks don't bottom at the same time, he stressed. Cramer said the market is in the midst of a brutal correction, there's no mistake about that, and that's why it's time to let go of the losers and the marginal stocks, and start making the shopping list of the good ones to scoop up in the coming days.
Analysts BlindsidedHow can analysts, those charged with analyzing stocks for a living, get blindsided by upside surprises and huge earnings disappointments? Cramer said it's because they only look at numbers on a spreadsheet, and not at the bigger picture. "Mad Money" viewers have skepticism and common sense, said Cramer, something the professional analysts sometimes overlook. And that's why they can underestimate a stock like Saks ( SKS), which delivered same-store sales growth of 15%, while the analysts were only looking for 5%. Cramer said while the analysts were busy crunching away at the numbers, customers were busy shopping at Saks stores. While the analysts were thinking Urban Outfitters ( URBN) could do no wrong, in reality, it delivered a huge earnings miss. Cramer said it's easy for analysts to miss social trends, as they're not easily factored into a spreadsheet. That's why the analysts missed the fact that Jack Daniels whiskey has become hip again, sending Brown Forman ( BFa) higher. That's also why the analysts miss the stunning growth of Whole Foods ( WFMI) and Chipotle Mexican Grill ( CMG), said Cramer. These companies are not just another supermarket or restaurant, they've evolved into something much bigger. "Use your common sense," Cramer told viewers, and catch the big moves that the analysts miss.
Blindsided to the DownsideIn the Thursday "Sell Block" segment, Cramer continued his education on blindsiding by telling viewers how not to get hit with a blindside to the downside. Case in point, the so-called "tablet bubble" reported earlier this week. Cramer said the news that tablet makers may have over-ordered components has hit everyone from ARM Holdings ( ARMH) to Micron Technologies ( MU) to Skyworks Solutions ( SWKS). But was this news really a surprise? Cramer said in retrospect, he should have seen this coming. "It's obvious," he said frankly. There is no bull market in tablets, said Cramer, only in Apple's ( AAPL) iPad. Cramer owns Apple in his