'Given that September tends to be a nightmarish month, it's good to have some cash,' the 'Mad Money' host said.
After turning in just six negative sessions in the month of August, the Nasdaq has dropped in four of the first seven trading days of the month of September. The tech-heavy index is down 7% this month., according to CFRA Research, and the presidential election may bring more uncertainty to the market.
Buy, hold and invest for the long-term is the old adage, yet Cramer said that his Action Alerts Plus charitable trust has a high portion, about 15%, of its portfolio in cash at the moment. Discipline trumps conviction, he said. "That's the most important concept in the business," the host said. "No matter how much you might love a stock, discipline says you need to start ringing the register when you've got a gigantic gain.
"If we hadn't sold so much stock for the charitable trust, today would've been a horror show. We'd be sitting there, looking at the prices and beating ourselves up for not taking profits when we had the chance," he said. "It allows you to sit back and look for discounts in the stocks you most like," he added. "Without a lot of cash, you'd be forced to sell something into weakness if you wanted to do any buying. If you borrowed money, your broker might be forcing you to sell at a loss."
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Cramer reviews biggest winners on the Cramer Covid-19 Index'Nearly five months later, the work-from-home tech stocks have given you extraordinary gains, while the traditional slowdown stocks they laid an egg,' the 'Mad Money' host said.
Read more »
Qorvo's guidance boost helped tech stocks roar higher, Jim Cramer says'Tomorrow, I expect the Apple bulls to resurface, the Zoom acolytes to speak up and the semiconductor analysts to raise numbers across the board thanks to Qorvo,' the 'Mad Money' host said.
Read more »
Rep. Jim Cooper Explains Why He Asked Postmaster General Louis DeJoy About Campaign Finance CrimesAllegations of an illegal straw-donor scheme first came up during congressional testimony last month.
Read more »
Meet Lily Allen's 2 Daughters, Who Officially Have Jim Hopper as a StepdadSinger Lily Allen — who married David Harbor in September! — shares two daughters with ex-husband Sam Cooper: Marnie Rose and Ethel.
Read more »
Most painful pullback since March is here, market researcher Jim Bianco warnsBianco Research’s James Bianco cites speculative activity, overbought conditions and questions surrounding the fate of a second virus aid package as catalysts for the market sell-off.
Read more »