Investors should look to take a hard look at their portfolios and make some sales tomorrow after today's huge rally, Jim Cramer told viewers of his "Mad Money" TV show Thursday.
Cramer advised selling into any future rallies to free up cash for the declines that are most certainly ahead. "Get into position for the next big sale," he told viewers.
Cramer advised selling into any future rallies to free up cash for the declines that are most certainly ahead. "Get into position for the next big sale," he told viewers.
He said today's 410-point rally in the Dow was entirely due to rumors that the federal government is considering a resolution mortgage trust to begin buying up bad home loans in an effort to rescue the U.S. banking system.
Cramer said he first floated this very idea on NBC's "Today Show" back on July 16, but said it's only one part of "the Cramer plan" for saving the markets. He said a resolution trust will not only put a floor in the housing market but is far more effective and inexpensive than the current plan of nationalizing entire companies.
Cramer said he first floated this very idea on NBC's "Today Show" back on July 16, but said it's only one part of "the Cramer plan" for saving the markets. He said a resolution trust will not only put a floor in the housing market but is far more effective and inexpensive than the current plan of nationalizing entire companies.
He said the Federal Reserve needs to cut interest rates to 1% to spur growth and add liquidity into the markets. He again urged the re-instatement of the uptick rule, which is designed to prevent relentless short-selling of companies. And finally, Cramer said regulation is needed to stop the credit default swap activity that companies have been engaging in.
All of these things, said Cramer, are what the markets need to finally put the housing and financial crisis behind us.
All of these things, said Cramer, are what the markets need to finally put the housing and financial crisis behind us.
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