Since Jim Cramer is often seen as a “perma Bull,” it is good for someone to point out when he is not. When he has NOT been bullish, he’s often been right, because his tendency is toward bullishness. He sometimes tells investors to sell late, but not always.
In 2000 many investors ignored his warnings, because preceding his sell comments he was writing about the “red hot biotech barbeque”! It’s pretty confusing to investors to be hearing one thing one week and in the extreme, mind you, and then have a complete reversal in direction the next week. But that is how money is made and capital is preserved in the markets. You must be nimble.
I don’t use hyperbole, so my subscribers don’t develop an attachment to the upward movement of stocks, gold, or anything else. So I was also able to get investors out of the market in 2000. We sell when our stops go off and we’ve lost enough!
If you are heavy in stocks, subscribe to my free tracker letter (see link below). Bounces are opportunities to sell during down trends. If we make it up over the breakdown point of 1294.26 and then over the 50 day moving average, we could retest the highs again at a minimum. So sell in stages if you decide to sell (see more recent posts too!)
Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.
© 2011 David B. Durand, M.D. All rights reserved.