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Jim Cramer: I Expect That We're In a Recession Right Now

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Jim Cramer's column on Real Money this morning focused on the death of the bull.

Here's what Cramer wrote:

The Bull had a long history of tussling with ailments, fed rate hikes, erratic policy statements, overly exuberant froth and hedge funds who would come on tv and fret endlessly about the federal reserve. But it was an actual illness that laid him low and when he was toppled he landed upon thousands of dip buying flies who had always thought they could dart in and out without much worry. They were faster than he was until he departed. Then fell like a ton of bricks.

Read the rest here.

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Video Transcript:

Katherine Ross:
Jim, over on Real Money this morning, you wrote an obituary for the bull.

Jim Cramer:

Katherine Ross:
And based on that, should investors start looking for the next bull market or do they need to hold tight right now?

Jim Cramer:
That's a great question and I think that since it is a health... Here's what I would say. If you have faith in our leaders, of which very few people do, but I'm saying maybe it's different this time. If you have faith in our leaders then I think that you can ride through a bear. If you have less faith and you need the money, then you do, even into this maelstrom you should do some selling. We're going to be looking as always for opportunity. But what is most quizzical and therefore most disconcerting is the decline in gold because what it says is that assets are going to lose value the decline in value and therefore cash is not going to decline in value. I have a lot of cash personally and been waiting because we sold the street, waiting to put that money to work.

Jim Cramer:
Have not. Why have I not? Because I thought Jesus was waiting for opportunities, put money in the S and P 500 and not allowed to own individual stocks. I do not regard yet, this is the time and that's because I suspect that we are in recession right now and that's why I wrote that piece. I think we have to be able to say, "What is a recession?" Recession is a cessation of business. I mean, I keep thinking about an assembly line worker, someone in a lot of parts for Boeing's planes come from Italy. Italy is going into lockdown and it's entirely possible that one of those planes closes and therefore they're not going to be able to build the 787 which is the principal source of cash while they wait for the max to go up. And yes, the orders are not as good, but they still have orders.

Jim Cramer:
And when I think about what the President did last night, people are, they want to characterize, and I think that this is a financial war, not unlike World War II when it comes to finances. I don't want people to lose their job and I don't think of war, all wartime footings you could say, "Jim, nothing should ever be compared to this, nothing should be compared to that." But there was a moment where there was such great unity after such rancor and this is one of those moments.

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