Jim Cramer's Stop Trading Dec. 13th
Stay away from the financials, Jim Cramer said on CNBC's "Stop Trading""segment Thursday.
"I think it's just too dangerous to recommend a lot of financial stocks. ... Some of these don't have a bottom," Cramer said. When he was working for his hedge fund in the 1990s, another grim time for banks, "a lot of money was made shorting financials."
Regarding the Fed's creation of a term auction facility yesterday, Cramer said, "I can't stop looking at the stocks. The stocks are not lying." Cramer believes that if the Fed's plan were working, financial stocks would be rising.
People who believe the Fed plan may be sufficient aren't seeing the broader picture, Cramer believes. "The guys who are focused on Libor and three-month rates ... they're just falling for the same logic that the Fed is. ... I love them for their specificity," but Cramer believes that the Fed hasn't done enough.
Cramer also responded to worries that Citigroup (C) will have to cut the dividend, saying "the stock is reflecting a dividend cut," but the bank is not out of the woods just yet. "A year ago, we could've fixed Citigroup without cutting the dividend, but they just kept buying and buying and buying."
Published By TheStreet.com
"I think it's just too dangerous to recommend a lot of financial stocks. ... Some of these don't have a bottom," Cramer said. When he was working for his hedge fund in the 1990s, another grim time for banks, "a lot of money was made shorting financials."
Regarding the Fed's creation of a term auction facility yesterday, Cramer said, "I can't stop looking at the stocks. The stocks are not lying." Cramer believes that if the Fed's plan were working, financial stocks would be rising.
People who believe the Fed plan may be sufficient aren't seeing the broader picture, Cramer believes. "The guys who are focused on Libor and three-month rates ... they're just falling for the same logic that the Fed is. ... I love them for their specificity," but Cramer believes that the Fed hasn't done enough.
Cramer also responded to worries that Citigroup (C) will have to cut the dividend, saying "the stock is reflecting a dividend cut," but the bank is not out of the woods just yet. "A year ago, we could've fixed Citigroup without cutting the dividend, but they just kept buying and buying and buying."
Published By TheStreet.com
Labels: C, Citigroup Inc., CNBC's Stop Trading, Jim Cramer
posted by Stock Administrator @ 9:39 AM
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