Jim Cramer broke down his thoughts on the markets in his Real Money column on Tuesday.
"Totems. That's what I call things, tangible things that can help explain levels and give you guideposts about what can happened next," wrote Cramer. "For weeks now, I have been saying that this market has to take out the December 2018 levels that we got to when Fed Chief Powell was gung ho about raising multiple times in 2019 just when the economy was cooling from his previous hikes. Now we are there."
Let's get to those when we go over to our Action Alerts PLUS daily rundown call because I want to break down more for our members there. But I do want to ask you about your column today. The first word of your column is totem. And I'm wondering if you can break down for our viewers here, what a totem is in this market.
I mean I think what we're looking for are what happened in December of 2018. Now December of 2018 was a time where we realize that we're going to go into recession. Okay? The market trades well in advance of when you go into recession. So the prices that we got that morning were the prices... Not the closing price, but the prices we got that morning were the prices that directly reflected an imminent recession. Well we are as you started at the top of this about to have an imminent recession. So we've got that very clear group of totems about what worked then and what didn't, what went down too much. And what I was trying to do in that piece is say, "Okay look, these stocks have further to fall because they don't reflect what we saw in December of 2018." And that's how I look at things. And I don't want to be saying, "You know what, this stock is cheap." When it was actually cheaper the last time that we were here. Knowing that last time we averted the recession and this time we can't. We can't. I'd love to but it's important to take recession in order to beat COVID.
Catch up on the Latest Videos on TheStreet!
- How the Coronavirus Could Impact Markets This Week
- Stocks Fell Friday, But There’s One Reason For Optimism
- Stocks to Consider if There Is a Coronavirus Pandemic
- A Legendary Investor Reveals How to Play the Markets Now
- The History Behind Warren Buffett's Berkshire Hathaway
- Women’s History Month: Wall Street Women In History: Meet the First Female Stockbroker
- TurboTax Webinar: How to Track Your Tax Refund
- TheStreet Explains: What Is the Fed Funds Rate?