Friends, im just trying to make you some money. My job is not just to entertain but educate and teach you. So why dont you call me at 1800743cnbc or tweet me at jim cramer. Believe it or not, when Interest Rates plummet, its a good thing, you can buy a house or get financing for a car much more cheaper. When gasoline goes down, its a good thing because youre spending less money on a basic necessity. Think of it as a tax cut. Even the strong dollar, which has hurt so many of our international companys bottom line can be a good thing. It means you can travel overseas and get much more bang for your buck when youre there. So if all these good things are occurring in one day. Why does the market get beaten to a pulp . Dow plummeting 296 points. S p plunging 1. 87 nasdaq nosediving 2. 42 . I think this sell off is all dollar, the way oil has come down so much. And the way Interest Rates have plummeted. First, understand that stocks can react quickly stimuli. Because stocks are for the most
Rates plummet, its a good thing, you can buy a house or get financing for a car much more cheaper. When gasoline goes down, its a good thing because youre spending less money on a basic necessity. Think of it as a tax cut. Even the strong dollar, which has hurt so many of our international companys bottom line can be a good thing. It means you can travel overseas and get much more bang for your buck when youre there. So if all these good things are occurring in one day. Why does the market get beaten to a pulp . Dow plummeting 296 points. S p plunging 1. 87 nasdaq nosediving 2. 42 . I think this sell off is all about the way we got a strong dollar, the way oil has come down so much. And the way Interest Rates have plummeted. First, understand that stocks can react quickly stimuli. Because stocks are for the most part trading together commodity it shouldnt be the case but we know it is. Short term stocks should trade based on the fundamentals. They are meant to be attached to companies
Short term stocks should trade based on the fundamentals. They are meant to be attached to companies arent they . But thanks to forces ranging from what the Federal Reserve is doing or saying to the price of oil, the politics to iowa strong polls to hedge funds betting against s p 500 futures rather than selling individual stocks that darn futures tail that wag and sometimes strangle. We get instant reactions that are just like the instant political analysis we heard about. The incident analysis is often wrong but that doesnt stop people from acting on it. Stocks are no different. Now we tend to think about commodities the same way we think about the tides of the ocean. Lets use that example tonight. When things are good and tides coming in, everything in the water will rise as it comes gently rolling towards the beach. A day at the beach. When the tide is going out, though, everything drowns as it gets swept out to sea. That analogy. When it comes to the stock market there are vicious
To a pulp . Dow plummeting 296 points. S p plunging 1. 87 nasdaq nosediving 2. 42 . I think this sell off is all about the way we got a strong dollar, the way oil has come down so much. And the way Interest Rates have plummeted. First, understand that stocks can react quickly stimuli. Because stocks are for the most part trading together commodity style like bushels of corn or wheat. It shouldnt be the case but we know it is. Short term stocks should trade based on the fundamentals. They are meant to be attached to companies arent they . But thanks to forces ranging from what the Federal Reserve is doing or saying to the price of oil, the politics to iowa strong polls to hedge funds betting against s p 500 futures rather than selling individual stocks that darn futures tail that wag and sometimes strangle. We get instant reactions that are just like the instant about. The incident analysis is often wrong but that doesnt stop people from acting on it. Stocks are no different. Now we ten
Avoiding the energy space. Its definitely a time to hook energy. Any business with the price of your only product goes down by 55 in six months its going to cause it but probably not for us. The economy is facing a 45 billion hit if oil prices average 50 adding that its likely moscow will be downgraded to junk status. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. Italy in focus with italian inflation data coming out. Coming in at 0. 0 for the month of december but it did come into negative territory year over year so a sign of deflation given the fact that we did get euro zone inflation data last week that did show euro zone inflation dipping into negative territory. Thats the First Time Since the financial crisis in 2009. A lot of focus on the low inflation. Will he in fact be now pushed to unveil full blown quantitative easing. The conversation has changed from will he unveil further easing measures to when and how much. Absolutely. People conti