This article originally appeared on RealMoney.com To read more content like this AND see inside Jim Cramers multi-million dollar portfolio for FREE - Click Here NOW.
A sucker rally, defined:
"A temporary rise in a specific stock or the market as a whole. A sucker rally occurs with little fundamental information to back the movement in price. This rally may continue just long enough for the "suckers" to get on board, after which the market or specific stock falls."
This is the first thing I thought of when watching the Dow rip at the open on Monday. The word on Twitter was that the Crimea vote was widely expected, and that the U.S.' initial sanctions on Russia wouldn't be that intense.
So the market focused on improved industrial production data that are off a low prior month's base and, theoretically, priced into stocks a couple months ago. Gold was bid down, industrial stocks were bought, and all was well, except homebuilders, which were dumped amid industry data that were released ahead of key earnings reports from KB Home (KBH) and Lennar (LEN).
Back to Russia. The execs I talk to are concerned about this matter, and the issue adds real uncertainty to their international expansion plans. Believe you me, over the next couple of weeks you will hear more talk about the next Cold War. It doesn't take a historian to know that this would be bad news for investors who have portfolios weighted in global companies. My opinion is that investors have gotten too complacent on geopolitical risks and are in for a punch to the face. Russia is frequently mentioned by execs as a fast-growing market that is getting more investment dollars.