Just out from the bald ex-Goldmanite.
Like It's 2008 All Over Again
by Jim Cramer
Talk about a market that breaks your heart when you trust it. This is so not 2010. It is a lot more like 2008 when the gains can't be held and those who buy high are obliterated by the end of the day.
And, like 2008, we don't even know what the silent killer is. New taxes? A new assault on capital by the president? More votes against Bernanke? A sense that the State of the Union will be about how rich people need to pay more? Robin Hood in Chief? Could Bob Prechter have done this with his bearish interview on CNBC? That would be amazing, since he has been bearish for ages.
I say, so what? Doesn't matter.
The issue, once again, is the irrelevance of earnings. The blunting of Apple (AAPL) and Google (GOOG) is remarkable.
The reversal in nearly all stocks is breathtaking.
And, of course, the bellwether of the moment, Goldman Sachs (GS) , not only failed to rally, it got killed.
Earnings, again, don't matter. Something in Washington clearly does.
It's just too hard not to sell into strength, and too difficult to buy into that first weakness.
Populism trumps price-to-earnings multiples, especially ones that deserve to be higher.
Ah, yes, the world's smallest violin... Note that nowhere in the above platitude (which somehow misses to highlight Cramer darling Citigroup which is now at its follow-on offering price) is it mentioned that it is these very people in D.C. who have provided the trillions in stimulus and curve invertion capital that have made all of Cramer's darling stocks shoot up in the first place. Stocks deserve to be higher? On what: one time, non-recurring stimuli, endless Quantitative Easing and government transfer payments? Or that there are no more shorts that can be spooked by Goldman upgrading the most shorted stocks?
And is there anything more kettle blackish than you calling Prechter something "for ages." Should we revisit that whole Bear Stearns advice you gave your ever decreasing viewers again?
Please Jim, stick to doing what you do best: namely, collecting a $1,872,000 base salary, and a target 2010 bonus of $1,287,000 and for what: for running TheStreet, which had a net loss of ($46.8) million on $43 million of revenue for the past nine months (and yes, Adjusted EBITDA of $2.6 million), straight into the ground. Good thing that "EBITDA" almost covers your compensation Mr. Cramer (just almost). In the meantime, don't hold your breath when the economy swoons into a double dip, and all your precious stocks and all your momentum chasing advice is exposed for the hollow sham it is.
h/t Hedged In