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The Federal Reserve let us down again, Jim Cramer announced to his Mad Money viewers Wednesday. That means there's more pain ahead for stocks and investors need to remain cautious and keep their cash on the sidelines.
Cramer said the Fed needed to take the possibility of a March rate hike off the table. By not doing so, the central bank made things much worse for stocks, as uncertainty will continue percolating through the markets.
Cramer then returned to his "checklist for finding a bottom" to see if there's anything positive investors could use to counter the Fed.
The political uncertainty has not gotten better, nor have things in China where the Shanghai markets have closed well below the key 3,000 level. Cramer said there are also no bottoms forming for commodities or oil, and the strong U.S. dollar continues to weigh on stocks.
The geopolitical tensions with North Korea appear to have died down somewhat, so that may be seen as a positive. Beyond that, the markets have seen no real leadership nor sizable merger activity.
All in all, Cramer said there are still far too many unchecked boxes on his list. That's why investors will need to remain vigilant.
Executive Decision: David Demshur
For his "Executive Decision" segment, Cramer spoke with David Demshur, chairman and CEO of Core Labs (CLB) , the high-tech oil services company that has seen its shares decline 60% from its all-time highs two years ago.
Demshur said Core Labs' mission remains the same, helping customers produce more oil and gas from every well. He said because of Core Labs, the amount of drilling activity in the U.S. can decline with the output remaining the same.
When asked about the current oil glut, Demshur predicts supply and demand for oil to balance out in the second half of 2016. He said every well depletes over time, and this year the global depletion rate is forecast at about 2.6 million barrels a day. That means 2.6 million barrels of new capacity must be brought online just to break even.
Add that number to the projected increase in demand of 1.2 million barrels a day, and it's easy to see how the current oversupply will soon dry up.
When asked whether oil could plummet as it did in 1986, Demshur said not to worry. Back then, he noted, there was 10 to 12 million barrels a day of spare capacity. Today there's only about one million.