Thursday, January 10, 2008

Cramer on BloggingStocks: Stocks to own in the era of a no-grow Fed (FSLR; SPWR; MON; MOS; AAPL; RIMM; GOOG and more!)

I'm passing this along for educational purposes only. I have a love hate relationship with Mr. Cramer's stock-picking. He's very sharp and knows much more about more names than I ever will but there's just something...
(okay, maybe more than something or I wouldn't have titled these posts "Cramer Predicts DJIA 14,582 At End of 2007 " and "Jim Cramer beats Monkey in Stock Picking Contest!" and "What Jim Cramer Does After Beating the Monkey ")

From Blogging Stocks via Engadget:'s Jim Cramer says there are some names that will work here, but they're a small slice of the total market pie.

Can someone, anyone, tell me why we can bank on this Fed? "The Fed has to cut 50 basis points or we are going to Dow 12,500."

Yeah, OK. I get it. Fed panicked and cut 50 last time we were shocked with a weak employment number. Maybe they will do it again.

But I look at it a different way. This Fed thinks it is smarter than all of us. It looks at ways to tinker to bring down the short-rates without attacking them head on. They are clever.

Clever's stupid.

I look at things very differently since last August. I look at the wrong course and think how that will impact the market.

It's been such a right call. I developed a stress test of financial stocks in the fall struck at 100; it hit 50 on Friday. This basket of home builders, banks, insurers and savings and loans is a total referendum on what the Fed will do and you can tell from its trajectory the Fed trend of screwing up and doing the wrong thing is your only friend....MORE