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When Investing Becomes Dangerous What Are Your Best Choices?
The long-term bull market is not only weakening; it is becoming a treacherous market according to Mad Money’s Jim Cramer. So, when investing becomes dangerous what are your best choices? Here is some of what Cramer says.
Between the mixed messages on U.S.-China trade and concerns about an economic slowdown, day-to-day stock-picking is becoming very challenging for the average investor, CNBC’s Jim Cramer acknowledged on Tuesday.
“We’ve got to call a spade a spade. This market isn’t just volatile, it’s treacherous,” he said after yet another turbulent trading session on Wall Street. “I don’t want the treachery, which is not going to go away, to get to you. Use it to your advantage.”
The best way for investors to take advantage of the swings is to ignore them altogether, said Cramer, host of “Mad Money.” Instead, he suggested focusing on long-term themes “that hold up through this madness” because they aren’t tied to China or the welfare of the broader economy.
Intrinsic Stock Value
This is the long term investing, value stock approach that uses intrinsic stock value as a guide. As we mentioned in the intrinsic value article, a key to making this approach work is knowing what a company does, how its business plan will make money, and how that business plan will remain viable into the future. In this regard, here are the approaches that Cramer recommends.