Cramer has been pumping the market rally recently despite adverse economic news such as fiscal cliff and Sequester but his advise has been: BUY BUY BUY.
That was why I was quite surprised to hear him changing his tone in his last Thursday (3/21)'s MAD MONEY:
"There are too many negatives in the markets to still be buying at these levels, and investors need to be extra cautious until the many positives come into better focus, he said.
Cramer said that going into the weekend he expects many money managers will be cashing out on worries that news out of Europe will sour the markets over the weekend. He said this will likely lead to additional declines beyond today's weak close."
Equally surprised was I just read this tonight:
"Senator John McCain said Republicans should compromise and increase tax revenue as part of a “long-term grand bargain” on the budget, and praised President Barack Obama for talking to senators across the aisle. "
What is going on here, is it already Trick or Treat time?
There appears to be a BIG disconnection now between the market and the economy. Did the economy start recovering? Yes and No. In some parts of the country and for some of the people, economy had indeed started recovering but for a lot of the underemployed or those in the wrong places in the country, recession continues.
Just to show the contrast:
We went to a nationally known barbecue restaurant for lunch on Saturday, yesterday, at around 11:30 a.m., usually the few parking spaces outside it would be completely filled and there would be a lot of customers especially out-of-town tourists waiting for a table. Well, there were tons of parking spaces and no waiting. May be we can blame it on March madness, everybody stayed home watching the local college favorite playing at 1:45 p.m.? However, there is a sign on the each table, telling customer that if they will text the restaurant they will receive a 20% coupon to be used for next time. Such a big discount for such a world renown barbecue restaurant is almost unheard of.
We went to a local famous Chinese restaurant for dim sum today (Sunday), the complete restaurant was full at around 1 p.m. and most of the dim sum ran out. We had to wait for a table.
Another interesting observation, a dozen off eggs in Aldi only costs $ 1.19 this Saturday, dropping from the previous 1.39, down from the all time high of 1.59. However, there are not that many advertised specials in ALDI.
From what I had read so far, we will start feeling the Sequester cut this coming week and the FED will start furloughing federal employees starting April 1, 2003 (April Fool's day) and it will reduce their work hours by:
"Sequestration is the $1.2 trillion in automatic spending cuts that was part of the Budget Control Act. About 800,000 federal employees nationwide could face 22 days of furlough, or one day a week, according to the union officials."
That is about 20% of the pay of quite a few federal employees. Will that not have a long term impact on our economy?
It is very strange, trying to respond to tulsa but his funky message appears at the bottom of his message: LI yui_3_8_1_1_1364245473049_594
Have bee seeing this happened pretty often lately. Do not know why? Anybody saw it too?
Yes, my wife told me I worried too much and she is right, you know. There are just too many things you cannot control. May as well enjoy it. At least we are going to Orlando next month. Right now our town is still freezing in the winter weather. Totally disgusting.
Hello J, As an eternal optimist , the future's so bright - I gota wear shades.
As the MADNESS rolls on , this has been a great quarter(so far).
People are spending on cars, homes, retail, you name it.
Long live the BULL market.