Jim Cramer loses big in this stock-picking test
By Michael Sincere
Source: Market Watch
http://finance.yahoo.com/news/jim-crame ... 36106.html
"If you don't buy something when the market is universally and deservedly despised, then when will you buy, especially if you're sitting on a boatload of cash?" Cramer asked.
He learned that when it comes to investing in commodity stocks, investors must know that it doesn't matter which ones they pick — like going for a better balance sheet or higher growth — if the underlying commodity is hit.
If that happens, they will all go lower.
"In this business, greed is just plain bad. Don't let anyone on or off screen tell you otherwise"
"I mean, I'm not smarter than the market, but I can recognize a good tape and a bad tape. I recognize when it's right and when it's wrong and that's what my strength is."
--Jim "El Capitan" Cramer
"Disasters have a way of not happening."
The preponderance of days, weeks, months and years is for the gravitational pull of markets to move stocks higher.
Rule No. 1: Bulls Make Money, Bears Make Money, Pigs Get Slaughtered
Rule No. 2: It's OK to Pay Taxes
Rule No. 3: Don't Buy All at Once
Rule No. 4: Buy Damaged Stocks, Not Damaged Companies
Rule No. 5: Diversify to Control Risk
Rule No. 6: Do Your Stock Homework
1. First, e-commerce is growing not shrinking.
2. Second theme, a new one: you want to buy travel and leisure stocks on down days because the vaccine, as idiotic as it is being administered right now, won't always be so.
3. Third: Digitization.
4. Fourth is Security.
5. Fifth, 5G remains a hugely important theme because it has barely begun.
6. Six: stimulus will produce what it did last time
7. Seven: China. No matter what you hear about how the PRC plays it, Biden will not be as tough on China as the current resident of the White House.
8. Eight: new theme: individual stock selection and wealthy management.
9. Nine: Work from anywhere is going to be the new norm.
10. Finally, ten, Healthcare.
High-profile companies such as cryptocurrency exchange Coinbase and trading app Robinhood also plan to go public soon.
1. Earnings results
2. Inflation
3. Stock glut
4. Covid-19
5. S&P Oscillator
6. Semiconductor shortage
7. Foreign policy
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