Jim Cramer: Should I Take my Money out of the Stock Market Now?

Jim Cramers Warning To Take Your Money Out of The Stock Market Right Now

Latest breaking news today: CNBC'S Jim Cramer of Mad Money issued a shocking statement on the Today show : Take your money out of the Stock Market right now this week!. You could see Today's host anchorwoman was visibly shaken at the bold statement issued by Jim Cramer on prime time television.

Cramer went onto say that you should take enough money out of the stock market that you would need for the next five years- and that he anticipates a future 20% drop in stocks. That means that the average person holding stocks will lose considerable money, and he is trying to stop people from getting hurt . You could also see that he was visibly upset to be giving out this information on TV, and said that he had struggled with saying this all weekend.

A Short Bio on Jim Cramer From Mad Money

JIM CRAMER

"Mad Money w/ Jim Cramer"

Jim Cramer believes that there is always a bull market somewhere, and he wants to help you find it. Cramer is host of CNBC's "Mad Money" (M-F: 6 p.m., 11 p.m. ET), featuring lively guest interviews, viewer calls and, most importantly, the unmatched, fiery opinions of Cramer himself. He serves as the viewer's personal guide through the confusing jungle of Wall Street investing, navigating through both opportunities and pitfalls with one goal in mind -- to help them make money .

Cramer is a former hedge fund manager and founder/owner and Senior Partner of Cramer Berkowitz. Jim compounded rate of return of 24% after all fees for 15 years at Cramer Berkowitz. He retired from his hedge fund in 2001, where he finished with one of the best records in the business, including having a plus 36% year in 2000.

(Bio taken from :http://www.cnbc.com/id/15838187/)

Bailout Plan Needs Bailing Out?

Obviously the 700 Billion Dollar Bailout Bill Plan is not going to be some magical cure for our ailing economy.The stock market and the economy seem to be in cardiac arrest and teetering now on the edge of an abyss-

Can we recover? This bold statement by Cramer today seems to be a call to action. I personally don't have any money in the stock market anymore to worry about - but if I did I'd be taking this very very seriously. If the economy takes a fatal nosedive average Americans holding stocks could get struck with big losses- whereas pulling the money now could perhaps tide them over for a few years.

Alarmist? I don't think so. Right on Target? I believe so. Jim Cramer has issued a vital warning about taking your money out of the stock market now- the ball is in your hands.

I wish you the best.

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Comments 24 comments

Benson Yeung profile image

Benson Yeung 8 years ago from Hong Kong

Dear Dorsi,

thanks for sticking your head out to share this hub. I think most of us will at least have to review where our money sits now and whether parts of it should be taken out of the market to put it into somewhere safer.


pgrundy 8 years ago

What about 401Ks though? You can't take the money out without hefty penalties, and many of them (like mine) restrict the percentage you can keep in 'safe' things like treasury bonds. I have no freakin' idea what to do with my 401k--it's been hemorrhaging money no atter what I do all year, and now I'm totally at a loss. The day the dow dropped 770 points I lost a third of it--just in that one day!

I remember Kramer the day before Bear Stearns tanked being on TV and telling people to hold onto the Bear Stearns stock, Bear Stearns wasn't going anywhere, they were going to be fine.

Thanks for this hub though. If I could take some of it out I definitely would--I think that is the right thing to do at this point.


countrywomen profile image

countrywomen 8 years ago from Washington, USA

pgrundy,

Suze Orman warned about knee jerk reactions. Esp for 401k unless one reaches the appropriate age early cashing in wouldn't be advisable. Even stock market will pick up once the elections are over and new govt takes over. But if one has invested a lot in speculative stocks instead of fundamentally strong stocks then it's better to get rid of them otherwise we can watch and hope for better times soon.


Jewels profile image

Jewels 8 years ago from Australia

That must have been a very difficult statement to make. There would be as much pressure upon him to not make it as to make it.


Storytellersrus profile image

Storytellersrus 8 years ago from Stepping past clutter

Thanks, Dorsi. I assume this means NASDAQ as well. I will forward this to my husband. We will be paying college loans for our three kids forever, I guess. That was his sure fire college fund. :(


Constant Walker profile image

Constant Walker 8 years ago from Springfield, Oregon

Disturbing news, Dorsi, but thank you for posting it at the right time. I think it is very important that we hear this from someone we trust.


Amanda Severn profile image

Amanda Severn 8 years ago from UK

Our FTSE has also been trading down, as has the CAC and other European stock markets. Iceland is in so much trouble that they have frozen the bank accounts at their UK branch of one of their major banks. UK residents with accounts at this bank have been told that they can't withdraw funds. The Icelandic Prime Minister has been on TV saying that the whole Icelandic nation is in bad shape financially. On a separate note,three of the biggest UK banks are pushing our government to inject funds into our banking system to improve liquidity, and were meeting today. This is becoming an epidemic.


Froggy213 profile image

Froggy213 8 years ago from On A Mountain In Puerto Rico

This has caused a world-wide ripple affect.

I too made a hub on this called Where's My I.R.A.?

Great hub Dorsi!!


02SmithA profile image

02SmithA 8 years ago from Ohio

My problem with Cramer's call is this.. for months he has been a bull while the market dropped from about 14,000 down to 10,000 and now he sounds the sell signal. I think in the short run he'll be right, but I have to question why he kept saying to buy buy buy for so long.


hot dorkage profile image

hot dorkage 8 years ago from Oregon, USA

WTF. the whole system is set up to rip me off. no matter what I do I lose.


Misha profile image

Misha 8 years ago from DC Area

@02SmithA Actually he is probably right in the long run - but wrong in the short run. I wouldn't rush to sell right away. I would wait for a rally to sell into. This guy proved to be a reliable contrarian indicator, so rally is coming :D

If I was in stocks of course. But I'm out since 2006 :D


Dorsi profile image

Dorsi 8 years ago from The San Francisco Bay Area Author

(Nikkei) Asian stock markets falling today- 3rd largest drop. Watch out for Wed. and Thursday, things are looking really bad in the markets all over the world.

http://www.bloomberg.com/apps/news?pid=20601084&am...

I believe Jim Cramer is quite right.


Eric Graudins profile image

Eric Graudins 8 years ago from Australia

Bottom has dropped out of Aussie stock market, and the dollar.

A few weeks ago we were almost at parity.

Now - $1 US - 68 centsOz.


Amanda Severn profile image

Amanda Severn 8 years ago from UK

Our Chancellor of the Exchequer (governments chief money man) was on the breakfast news an hour ago, anouncing a bail-out for the banks. In effective the government plan to part-nationalise the banks to provide funding to jump-start inter-bank lending,etc. in the hope that this will trickle down to business and consumer lending, which has continued to be sticky.


shibashake profile image

shibashake 8 years ago

IMHO, if you have a long time horizon, now is a good time to buy. The downside risk is much less than the upside possibility. The market is already at a 5 year low, and the Dow is already down more than 30%. I wouldn't put all my money in, but I would slowly start collecting on pullbacks.

Cramer is a momentum junkie. He jumps in and tells everyone to buy when stocks are already high, and he stokes panic and fear when things are going down. IMHO it is already too late to sell. I think a better investor to watch is Warren Buffett. He is buying right now. He has recently put in a sizeable investment into high quality companies like GE and GS. Just my two cents.


wannabwestern profile image

wannabwestern 8 years ago from The Land of Tractors

I agree with shibashake. You don't want to pull out of the market when it's down, especially if you have a long-term horizon. Where are you going to put that money, anyway? The banks?

Pulling your money out of the market at this point amounts to diving into a bank run. I wouldn't do it.


Gail 8 years ago

Cramer made money when times were good, during the technology boom and the Greenspan housing bubble. Clearly, he has no understanding of the forces in play in the economy or he would have been recommending that people pull out last year. I wonder if he follows his own advice and now he sees his net worth plummet. If you have a secure job, if you already have assets that will see you through a 5 year period of a bear market, if you have hope that an Obama Presidency will restore confidence by making drastic changes to health care, energy policy, the wars, etc., then I would hang in there. Anyway, that is what I plan to do.


Dr. Mel 8 years ago

I'veeenin the market since 1981. Please don't listen to this SHORTER. He gives his kind of news to drive the prices down because he's been selling short, then he s in a position to pick up your stack at a lower price. Be careful of thi shill.


viralprospector profile image

viralprospector 8 years ago from DFW Texas

Dorsi;

I assume he said this Monday. I recall that the market opened at over 10,000 Monday. Today, it traded at under 8000, so there is the 20% drop. While it closed above that, around 8500 I think, that is a pretty good call.


Dorsi profile image

Dorsi 8 years ago from The San Francisco Bay Area Author

Yes he did make a good call on this one, didn't he? Now yesterday Wall Street had record profits for the day, the greatest leap since the Great Depression. Looks like the world leaders meeting, the recovery plan and the bailout plan are kicking in. We have a rocky road ahead of us though, and like Pelosi said yesterday, it's time for belt tightening. Lifestyle changes ahead for many.


bgamall profile image

bgamall 7 years ago from Las Vegas, Nevada

Cramer often pumps only to dump or short. I think in this case it could be that he has his friends shorting. Dorsi check out this link to see that Cramer even admitted lying on TV about stocks. Pretty disgusting. There is a video out by John Stewart and another one where it shows that he pumped retail and the very next week dumped it. He has many friends who short stocks:

http://www.dailykos.com/storyonly/2009/3/5/16720/7...


Dorsi profile image

Dorsi 6 years ago from The San Francisco Bay Area Author

Thanks everyone for stopping by to take a look at Jim Cramers thoughts on taking your money out of the stock market. I personally don't need to worry anymore whether to or not!

Thanks for stopping by.


joethewatchman 5 years ago

we are in the 3rd seal /blackhorseman of the book of revelations in the bible/it appears to be an economic seal. we are 4 years into it.good luck god bless .look for more joethewatchman on twitter


Dorsi profile image

Dorsi 5 years ago from The San Francisco Bay Area Author

@Joe) Thanks for reading and as a believer, I am going to be looking into that part of Revelation. I'll be seeing you on Twitter.

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