Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Anybody here taking/took Cramer's advice yesterday?
Old 10-07-2008, 08:54 AM   #1
Recycles dryer sheets
shotgunner's Avatar
 
Join Date: Jun 2008
Posts: 454
Anybody here taking/took Cramer's advice yesterday?

I spend a nice relaxing fall day in the water in my layout boat duck hunting yesterday and I missed Cramer causing the market to tank or so some say. Apparently yesterday he was on the Today show and told America to get out of equities 100% for any money you might need in the next five years.

Jim is entertaining for sure, certainly a smart guy but he has had some real bad calls this year with Lehman and Wachovia. His crystal ball doesn't seem much better than any other.

So anyone here think this is a good idea right now?
__________________

__________________
shotgunner is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-07-2008, 09:04 AM   #2
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Very little of my wealth outside of retirement accounts is in stocks anyway -- less than $5,000. Given that, I just suck it up and watch sellers rush in to kill every rally...
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-07-2008, 09:05 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
We bought yesterday with money from a tax loss harvesting sale on Friday. We're trying to get a bit of money into the market though and actually have an asset allocation rather than just real estate related stuff. Only time I've looked smart so far is when i buy low - a BAC buy at $25.15 looks better than the BAC at $33.08.

Can't say we bought anything else yesterday though, and when i did the rent deposit i just put the checks in the bank and held out the cash.
__________________
calmloki is offline   Reply With Quote
Old 10-07-2008, 09:19 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Based on the numbers from people who track Cramers "advice", you'd do well to trade against him.

Here are two video clips from his show. In one week he's screaming for everyone to buy. In the next, he says everyone should sell and that anyone who bought the week before was a moron for doing it and shouldnt have. He seems to have forgotten that he was the one telling people to buy.

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 10-07-2008, 09:24 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,434
Quote:
Originally Posted by cute fuzzy bunny View Post
Based on the numbers from people who track Cramers "advice", you'd do well to trade against him.

Here are two video clips from his show. In one week he's screaming for everyone to buy. In the next, he says everyone should sell and that anyone who bought the week before was a moron for doing it and shouldnt have. He seems to have forgotten that he was the one telling people to buy.

Yeah, I have seen this. I wish someone would ask him about the flip flop on the Today Show next time they have him on.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 10-07-2008, 09:24 AM   #6
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by cute fuzzy bunny View Post
Based on the numbers from people who track Cramers "advice", you'd do well to trade against him.
Like when he told a caller that there was nothing to worry about at Bear Stearns just days before it floated to the top of the tank on its side?
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-07-2008, 09:30 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
I was just as interested in his behavior during the clip as the message. I know he has to put on a little show but he looks like he went over the edge at some point. Stick some bushy hair and a big red nose on him and he'd be a little too kooky for clowndom.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 10-07-2008, 09:52 AM   #8
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Considering that I just retired, Cramer's advice that you quoted is good, keep the money you need over the next five years out of equities. I never listen to Cramer but I am doing that and then some.

I have new money earmarked for equities--money I won't need for about fifteen or more years. Forty percent of it went in yesterday.
__________________
CuppaJoe is offline   Reply With Quote
Old 10-07-2008, 09:55 AM   #9
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by CuppaJoe View Post
Considering that I just retired, Cramer's advice that you quoted is good, keep the money you need over the next five years out of equities. I never listen to Cramer but I am doing that and then some.
Well, true. But the thing is that Cramer makes it sound like this is special advice for a tough time in the market. It is *always* prudent financial planning to not take big risks with money you will be needing in a fairly short time horizon.

This would be like Ray Lucia saying "don't put Bucket #1 in stocks." Well, duh.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-07-2008, 09:58 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Nov 2007
Posts: 1,052
In Cramer's defense, that's not exactly what he said....

Cramer: Why I Say Sell Now BAC,C,JPM,NYX,USB,WFC - TheStreet TV
__________________
Art G is offline   Reply With Quote
Old 10-07-2008, 10:00 AM   #11
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Quote:
Originally Posted by ziggy29 View Post
Well, true. But the thing is that Cramer makes it sound like this is special advice for a tough time in the market. It is *always* prudent financial planning to not take big risks with money you will be needing in a fairly short time horizon.

This would be like Ray Lucia saying "don't put Bucket #1 in stocks." Well, duh.
-
Agreed, Cramer fans the flames. I have seen him on the "Today Show" presented as an expert. Sick!
__________________
CuppaJoe is offline   Reply With Quote
Old 10-07-2008, 10:18 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
Cramer starts his hedge fund in the summer of 1987 and almost closed it in October after the crash. he almost called it quits but his wife said he should stick it out.

in the 1998 bear market Cramer was a part time blogger via his company, thestreet.com. at the bottom of the bear he blogged "get out, get out now" and within minutes the market started to rally.

2002 i don't know what he said, but him and Kudlow had a show at the time and it was mostly politics.

can't say for sure this time, but the trend is anytime Cramer gets scared, you buy and margin yourself to the max
__________________
al_bundy is offline   Reply With Quote
Old 10-07-2008, 11:24 AM   #13
Thinks s/he gets paid by the post
bright eyed's Avatar
 
Join Date: Jan 2007
Posts: 1,891
yeah, i thought you weren't supposed to keep the money in equities if you needed it anyway - but I think people might not have heard the "five years" part and just heard the "get out!" part...
__________________
If i think of something clever to say, i'll put it here...
bright eyed is offline   Reply With Quote
Old 10-07-2008, 11:31 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Cramer is great when Im on the treadmill. Specially when he busts out the props. I want that sound board he has..heheh


Mad Money - Cramer's Sound Board- CNBC.com
__________________
Notmuchlonger is offline   Reply With Quote
Old 10-07-2008, 11:43 AM   #15
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 887
What happened to Leonard the Wonder Monkey at cramerwatch.org. Basically pitted Cramer's picks against a random computer or a monkey throwing darts (whichever metaphor you want). Last I checked, Cramer and Leonard were about even.

I see the site's down now.

-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Old 10-07-2008, 11:57 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,753
Quote:
Originally Posted by shotgunner View Post
Apparently yesterday he was on the Today show and told America to get out of equities 100% for any money you might need in the next five years.

So anyone here think this is a good idea right now?
No, but it was in June when I sold enough equities for 5 years living expenses. I called it re-balancing though.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 10-07-2008, 11:59 AM   #17
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by kumquat View Post
No, but it was in June when I sold enough equities for 5 years living expenses. I called it re-balancing though.
I had been thinking about reducing my allocation to stocks from 70% to 60% for a while. The sad thing is, if I rebalance to 60% now I would have to BUY stocks...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-07-2008, 12:18 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Cramer's advice on the Today Show was relatively innocuous and benign. If you have money you need in the next 5 years, most folks would already say do not invest in stocks with it because 5 years is too short a time frame for the risks associated with equities.

For retirees who are withdrawing 4% a year from their portfolios, 5 years worth is just 20% of a portfolio.
Quote:
So anyone here think this is a good idea right now?
I would guess that most if not all people who need to spend any of their portfolio in the next 5 years are following this advice as a matter of course. Otherwise they would be more than 80% equities which is suitable for folks with a very long term outlook. Full disclosure: I am less than 80% equities, so I guess I am technically following Cramer's advice.
__________________
LOL! is offline   Reply With Quote
Old 10-07-2008, 04:43 PM   #19
Full time employment: Posting here.
Dog's Avatar
 
Join Date: Apr 2006
Posts: 781
I saw Cramer on the Today show yesterday and he was recommending not having anything in the stock market if it will be needed in 5 or less years. He looked very sober. Suze Orman was on Oprah last week saying the same thing. I think it may also have been Cramer that recommended pulling it out now if you need it in less then 5 years, even if it is a loss. He sees the market going lower. Saw Dave Ramsey today and he said he is staying the course and not changing his game plan. He also mentioned that people shouldn't have money in the stock market that they will need within 5 years. At least everyone in on message.
__________________
Dog is offline   Reply With Quote
Old 10-07-2008, 04:46 PM   #20
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Dog View Post
I saw Cramer on the Today show yesterday and he was recommending not having anything in the stock market if it will be needed in 5 or less years. He looked very sober. Suze Orman was on Oprah last week saying the same thing. I think it may also have been Cramer that recommended pulling it out now if you need it in less then 5 years, even if it is a loss. He sees the market going lower. Saw Dave Ramsey today and he said he is staying the course and not changing his game plan. He also mentioned that people shouldn't have money in the stock market that they will need within 5 years. At least everyone in on message.
Nice to see everyone passed Personal Finance 101: No money for short-term goals in stocks.

I hope these people didn't make millions because they knew this unbelievably sage advice.
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
ER'd yesterday! walkinwood Life after FIRE 22 05-11-2008 11:48 AM
Bear Stearns - Cramer's double take Running_Man FIRE and Money 15 03-15-2008 09:00 AM
Cramer's take on today Bikerdude FIRE and Money 7 02-28-2007 05:11 PM
Cramer's YTD Return windsurf FIRE and Money 69 12-02-2005 06:11 AM
Anybody ever watch Cramer's Mad Money? riskadverse FIRE and Money 19 07-11-2005 10:41 PM

 

 
All times are GMT -6. The time now is 03:40 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.