Are you worried about this market and the overall impact of the market environment on your portfolio and even your lifestyle?
Jim Cramer weighed in on what investors need to know about the markets.
Watch the full video above for more.
Now, I want to say for our viewers that it does take two quarters of economic downturn to be in a recession, and it does look like we're heading that way, so what should...
I don't know, Katherine. I think that's really the issue. I have Regeneron on tonight, George Yancopoulos, who is the doctor who figured out the Ebola virus. And they've got some promising things. They're being much more upbeat than they were four weeks ago. The moment this happened, I got in touch with Len Schleifer. Len was my first guest on Mad Money. Stock was a five one to 500 so he's got a little street cred there. Len was not bulllish. Len was saying, "Listen, Jim, please, kind of backwalk." But I wouldn't backwalk because I felt that the people who solved Ebola would be the people who solve this. They're closer and closer. And when you hear that these are not people who are hype artists, there are some people I would not let on the show, I will not name them, who often come out and say they've got the vaccine and they don't. This is a different kind of company.
But let's say they come up with something that gets you out of the hospital, solves the public health crisis, and let's say they come up with something that is in June. Well then you're going to have the biggest boom in the world and it won't even be a two quarter recession. It'll be just a one quarter business hiatus. So the thing that I'm seeing today on our screen, today's the first day where I actually see... And we opened up too high so we want to do some [inaudible 00:02:12] we have the money when it comes down. Today's the first day where I've been waiting to see what I thought would happen, which is the bifurcation between the necessities and the non necessities. The non necessities being anything that's related to restaurant, to retail, cruise ship, and of course oil, travel, leisure. And the necessities are starting to thrive. And I think that that's going to be the bifurcation that you're going to deal with until we solve COVID.
But let's take a step back. Let's talk about these investors who are tuning in to CNBC or they're just tuning into news alerts and they're seeing recession pop up. They're seeing people like Donald Trump last night say that we're heading in that direction. What should they be doing now to protect themselves?
I mean I want to distinguish between what has to happen which is that we have to take the recession, we have to take the down turn, let's call it down... We have to take the downturn to win. Okay? I look at a Starbucks at 54 I have to huddle with our group, but Starbucks at 54 presumes that it's going to take very, very long to solvent. The stock was at 90 not that long ago and it also presumes that China's not real in terms of its comeback. I like using Starbucks as a metaphor. It also presumes that people are just going to stop going or congregating or that they're all going to close. And I say to myself, "Okay, is it going to be a 53, one when we solve COVID? And two is it going to be a 53 when COVID peaks because it's hurt or killed everybody and there's no money left for it to get to, typically among the people who are 70 to 90." And I say, "You can't wait. You can't wait to buy that. You maybe have to buy some." By the way, we've got to buy some AVY right now. Just let me just hold them. But yeah, for non club members, we have a little investment club, and I'm not going to miss this opportunity to buy some AVY. Look real time. What am I going to do?