Tags: cramer | dow | stock | crash

Cramer: Dow Will Not Revisit Previous Lows

Friday, 11 Jun 2010 09:16 AM

Recent slides in the stock market are not a precursor to more declines, said Jim Cramer, the TV stock guru and Mad Money host.

Investors do not need to fear that the market will fall to 2008 and early 2009 levels, he said on his CNBC show.

“We do need to worry. But not like we were worried in the last bear market,” Cramer said.

The negative sentiment surrounding the market is overstated because the economy is not doomed, he said. The weak stock market is the source of the problem, he said.

“Even under my own disaster scenario I do not think we will come anywhere near where we were in the dark old days. There's just too much good, too many opportunities, and too many things going right to see those levels again,” Cramer said.

Investors should have diversified holdings and prepare for short term losses, he said.

Other experts said the market will continue to fall and point to the recent huge dips in commodity prices, the Chicago Tribune reported.

“We believe industrial metals will likely face further headwinds in the coming months as the market weighs the deflationary risks resulting from imbalances in the Western world. Copper and nickel have greater downside risk if near-term investor sentiment deteriorates as we expect,” said Deutsche Bank analyst Michael Lewis.

With copper’s sharp decline reaching a 7½ month low, that is “a sign that the global economy is poised to cool off, and probably quite sharply,” said Gluskin Sheff & Associates economist David Rosenberg.

Commodities prices are simply correcting themselves after reaching unrealistic highs, said Moody’s economist John Lonski.

“Current industrial-metals price deflation mostly reflects a decline from patently overvalued and, thus, unsustainable heights. Seldom, if ever, had base metals prices outpaced world economic activity by as wide a margin as during the past 10 years,” he said.

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Recent slides in the stock market are not a precursor to more declines, said Jim Cramer, the TV stock guru and Mad Money host. Investors do not need to fear that the market will fall to 2008 and early 2009 levels, he said on his CNBC show. We do need to worry. But not...
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2010-16-11
Friday, 11 Jun 2010 09:16 AM
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