Need some advice?
The Dow is set to have the worst quarter in history, so what should investors know as we gear up for another month of volatility?
Here's what Jim Cramer has to say. Watch the video above for more.
Jim, let's talk about the investor. What should the investor be looking at for the month ahead since this is the last day of the quarter?
Well, I think you have to steel yourself. Let's say you own JP Morgan. Well you don't know where the [inaudible 00:00:14:13]. You know that it's a premier franchise in a world where the European banks had been just completely decimated, so you're buying the number one bank in the world. It yields 4% so what you have to say is it's down 32%, that I am [inaudible 00:14:35] I would wait til 5% because for all you know, they make them give up their dividends. Jeez. But I don't want to give up one of the premier franchise in the world selling at what could be 10 times earnings if they cut numbers so I'm going to take pain. I think what people have to recognize is you should be in a pain taking mode. Don't own companies with a really bad balance sheet. JP Morgan has a fortress balance sheet.
If you're out there buying Carnival, you're buying Carnival Cruise too, you're trying to raise some money. I mean think about this: will Carnival Cruise have any demand? One of the things that's just driving me batty, about the cruise lines, whether it be Norwegian or Royal or Carnival, which is up despite the fact that they can't see the dividends, is that who's going to take the cruise? Now maybe it's entirely possible that they give the price away. You know, give them the price, get them to say "I'm willing to risk it" but as long as there are cruise ships out there with crews that have COVID, I just don't see why you want to speculate on that. Maybe Carnival, you think you could buy it at 13, sell it at 18. I don't want a trader. I want investment.