• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Markets

Business as Usual

The action was tiring and difficult to navigate, but, ultimately, very much 2012, not 2011.
By JIM CRAMER Apr 13, 2012 | 06:28 PM EDT

The last 10 minutes of trading was nasty today. Let's reflect on it. Everyone has universally decided that Europe's gone back into bear-market mode, so we have to as well.

First, I agree that Europe is in bear-market mode. Worse, it has far fall because other than Spain, those markets have been real darned good. Don't forget that they were all up not that long ago.

However, I do not think that the European Union (EU) is going to wipe out the banks that it just funded to buy all of that sovereign debt. That's just too hypocritical -- even for those guys!

I think Europe will muddle through. I know you don't want to hear this after today but our banks simply aren't that exposed and have too much capital for me to tell you to short them. It just doesn't add up.

Second, I do believe that there are plenty of hedge funds, who, after blowing out all of their longs that they established to make themselves look good at the end of the previous quarter, got long again yesterday! I am not kidding.

Third, the hedge funds just love to get short when Europe is weak, so they can cover in the morning -- and we left work unable to even think about why that market could rally over there.

Somehow, though, I think the much better trade is to get short something in Europe, find some stock exposure, and then go long over here. You are only playing the spillover effect, rather than betting on the real tsunami.

To me this has, alas, become a total stock-picker's environment. Hence, my previous piece highlighting all of those terrific growth stocks that withstood the onslaught today.

Ultimately, I think today was business as usual. Tiring. Difficult to navigate, but, ultimately very much 2012, and not 2011.

_______

Editor's Links

  • This Selloff Is Just Profit-Taking
  • Don't Get Carried Away With the Negatives
  • Unasked Questions on the Google Call
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Investing | U.S. Equity | Markets

More from Markets

FS Insight Weekly Roadmap: Market Response to Hawkish Fed Is an Overreaction

Tom Lee and the FSI Team
Sep 23, 2023 9:10 AM EDT

Here's why we believe 'higher for longer DUE to higher GDP' has a more dovish tone, and remain constructive for the rest of the year.

Stocks May Bounce, but This Is Far From an 'All Clear' Signal

Guy Ortmann
Sep 22, 2023 10:15 AM EDT

We suspect any bounce would likely be one within an ongoing correction.

Tom Lee: 3 Reasons the Post-Fed Market Decline Is an Overreaction

Tom Lee and the FSI Team
Sep 22, 2023 8:37 AM EDT

We view the magnitude of the equity drop and commensurate surge in yields disproportionate to the FOMC rate decision and press conference.

A Difficult Market Is Complicated by Unusual Strength in Just 7 Stocks

James "Rev Shark" DePorre
Sep 22, 2023 7:26 AM EDT

Will this corrective action continue, or will the indexes be saved once again by the 'Magnificent Seven'?

Doug Kass: Risk Happens Fast. This Is All About to Get Real

Doug Kass
Sep 21, 2023 2:30 PM EDT

Caution and stock market congestion may lie ahead as interest rates stay higher for longer, while the stock market decline has now assumed a global character. Plus, more lessons from Howard Marks.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:20 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading in Multiple Time Frames
  • 10:24 AM EDT BRUCE KAMICH

    This Could Get Messy

    A number of key stocks are getting close to import...
  • 01:41 PM EDT CHRIS VERSACE

    Latest AAP Podcast With Helene Meisler!

    Listen in as the Action Alerts PLUS podcast talks ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login