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October 6, 2008

Cramer's panic: A signal to buy stocks?

Barry Ritholtz says Jim Cramer's advice to pull any money you might need in the next five years out of the stock market might be "a giant buy signal," based on the notion that when the news media finally figure out that a trend is big REALLY BIG, it's probably close to being over.

As I have said in the past, I don't like to harp on any one person. I also don't want to be a Cramer stalker. But DAMN if that headline doesn't smell like a giant buy signal.

The market down 30%, the VIX spiking to 56, and Cramer giving a panicky SELL on TV this morning. We have a 9,500 downside target, and the likelihood of an emergency action makes us want to get long -- at least for a trade . . .

We are putting a toe in the water here.

Note -- he said "at least for a trade," which means short term! On Cramer: Of course, if you EVER need money in the next five years, it shouldn't be in stocks.

Posted by Jay Hancock at 12:36 PM | | Comments (1)
        

Comments

Sheesh, so much for Warren Buffet's venerable nugget: "Buy when everyone else is selling and sell when everyone else is buying."

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Wednesdays and Fridays.
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