Anybody here taking/took Cramer's advice yesterday?

[shotgunner]

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?

[ziggy29]

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...

[calmloki]

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.

[cute fuzzy bunny]

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.

YouTube - Jim Cramer: The Flip-Flop that Ought to be Illegal

[Dawg52]

Quote:

Originally Posted by cute fuzzy bunny 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. YouTube - Jim Cramer: The Flip-Flop that Ought to be Illegal

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.

[ziggy29]

Quote:

Originally Posted by cute fuzzy bunny 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?

[cute fuzzy bunny]

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.

[CuppaJoe]

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.

[ziggy29]

Quote:

Originally Posted by CuppaJoe 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.

[Art G]

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

[CuppaJoe]

Quote:

Originally Posted by ziggy29 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!

[al_bundy]

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

[bright eyed]

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...

[Notmuchlonger]

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

[CCdaCE]

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

[kumquat]

Quote:

Originally Posted by shotgunner 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.

[ziggy29]

Quote:

Originally Posted by kumquat 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...

[LOL!]

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.

[Dog]

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.

[ziggy29]

Quote:

Originally Posted by Dog 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.