I’m calling it now. Jim Cramer, CNBC and Thestreet.com commentator and former hedge fund manager, has officially called the bottom.
Well, he actually went on the Today Show and told every investor to “PANIC!” The sky is falling! SELL! And this after the market has fallen 30%! This is the ultimate sign of a market bottom when an uber-bull reverses course. With every market indicator indicating that we are near a bottom including new highs/new lows, the VIX, stocks above their 52 week moving average, this is the ultimate sign.
I recommend that anyone waiting to invest, do so now. You rarely get a bell ringing for the sound of a bottom than as you did today. Here is the link:
He really told investors to “panic”, Aaron? I didn’t see the Today Show, but I saw Cramer’s show today and he said no such thing on Mad Money. He said that investors ought to liquidate any money in non-IRA/401(k) accounts that they will need use to cover expenses over the next 5 years. This is consistent with Financial Planning 101 advice that any money you’ll need to spend in the next 3-5 years shouldn’t be invested in equities.
BTW, regarding your own fund, are you seeing net redemptions, or are your clients hanging in there?
He provided you the link. Why not click on it?
He is predicting a 20% decline based on his counting of dow stocks. He says if you have over 5 years you can ride it out.
I just completed level 3 of the CFA program and no where does it say that investors should liquidate equities to have funds ready to cover their expenses over the next 5 years. That is either OLD finance 101 or it is a rule-of-thumb type financial planning. A modern financial plan for someone with near term cash needs would include a higher cash allocation in portfolio but it might also take into account dividends from equity portions, some laddered debt instruments, and even expected inflation.
ok, so maybe I was wrong in this post. I’m afraid I gave into my visceral reaction to Cramer in general, who gets people as emotional as possible at the exact moment that they should try and be rational.
If you are any kind of investor now is exactly time to invest. And anyone who needs money within 5 years, is not an investor but a speculator and Cramer knows this.
I basically, think that now is one of the great moments in our lifetime to buy into the market.