Nowadays, with a market that sees wild, 1,000 point swings from one degree to another, what should investors make of downgrades?
Jim Cramer has some advice for investors looking for clarity.
Watch the full video above for more.
Let's flip that. Let's talk about stocks that are getting downgrades. Should you be selling those at this point?
Depends if I think the downgrade is feasible. I mean, I don't think that anyone who downgrades ... Right now Royal Caribbean, I don't think that person's a mistake. I think that's a good call, because I think that there is a secular ... Well, it's even worse. You have a cyclical and a secular decline when it comes to Royal Caribbean. Cyclical and secular. Meaning that the economy's rolling over, you don't take a cruise even though they are a representative bargain, but you don't because you're trying to keep your job. And secular meaning that we ...
Look, no offense, I happened to love all the people who run the cruises. I was booked for a cruise in February. Couldn't wait. But now I'm worried, and when I propose to the government that they use the cruise ships as floating hospitals, they said, "We can't, the air's too bad." So I mean cyclical and secular, not so good, with a dividend that I don't think can be maintained with foreign tax regime. You know, really what I would regard as being suboptimal.