- another round of tapering talks and
- good investing tips.
You're Investing, Not Running the Company Posted at 12:55 p.m. EDT on Friday, Oct. 25 Where does it say that we have to hold each stock to the same set of rules? Where does it say that it's wrong that a stock goes higher based on revenue growth not on earnings? Is there some sort of handbook that says certain stock gains are legitimate and others aren't because they were powered by enterprise worth and not the multiple we put on its earnings stream? To listen to people talk about the gains in Amazon.com ( AMZN) today after it showed a remarkable 24% gain to $17 billion in revenues, is to believe that somehow, the whole move shouldn't be allowed. I hear people speak of how horrendous this all ends and how there has to be a moment where it switches to profitability or else it will hit a wall and be crushed. And you know what? This is all nonsense. It's all theoretical hogwash. The simple truth is that the goal of investing in the stock market is to make money. There are many ways to make money, some more risky than others. But the goal is the same: get rich owning stocks. The moment you think differently is the moment that you are not investing. You are just theorizing.
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
The Pattern That Plagues the Market Posted at 2:5 p.m. EDT on Monday, Oct. 21 Yep, tomorrow we get Friday's postponed employment number at 8:30 a.m. and we need to recognize that we will be right back on Washington's red-hot griddle because that's just the way it works these days. You have to figure that no matter what the number, you are being given a reason to sell. If it is too strong, we will hear that the Fed is nervous about the strength of the economy. We will hear Fed governors interviewed who will fret about how it is time to scale back bond-buying. If it is too weak, we are going to hear that the tussle over the shutdown and the debt ceiling killed the U.S. economy and it can't be revived by the Fed's failed efforts. The confusion will be viewed as a fabulous opportunity to take profits in stocks. You know what? I say bring on the sale. So many stocks have gone up endlessly that we need a sell-off to cool things and give us better opportunities to buy. Which brings me to the pattern that has plagued the market for years and must be recognized if we are going to be able to dodge bullets and make money: First people decide that there is something in Washington that is more important than anything else that any company could possible say. This Washington preeminence is part of both the aftermath of the great recession and an activist administration that really doesn't care about the stock market, even as it's been pretty darned good despite this administration. In the wave of Washington's hegemony, companies become bit players in the bigger scheme of things and we don't really listen to what they have to say, even during earnings season.