Behind the Selloff: Cramer’s ‘Mad Money’ Recap (Thursday 10/11/18)

No, the Federal Reserve hasn’t gone crazy, it’s just gone lazy, Jim Cramer told his Mad Money viewers Thursday, after another huge selloff in the markets. Cramer said there are two ways to look at the economy. You can take a macro (top-down) approach, or a micro (bottom-up) approach. The Fed is clearly in the macro camp, determining that tax cuts and deregulation has created an economy that can easily absorb several, lock-step rate hikes.

But after talking to countless CEOs, Cramer said while that sentiment’was true, it simply isn’t anymore. In fact, he’s compiled a list of everything that’s already peaked and has begun to slow.

  • Publisher: TheStreet
  • Date: 2018-10-11T21:22:37.000-0400
  • Author: Scott Rutt
  • Twitter: @@TheStreet
  • Citation: Web link

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How To Play The Selloff – Cramer’s Mad Money (10/10/18)

JPMorgan Set to Kick Off Earnings Season

JPMorgan Chase & Co. is expected to report third-quarter earnings per share of $2.26 on sales of $27.4 billion Friday morning before the market opens, based on a FactSet survey of 24 analysts.

The stock has risen 7.7% since the company last reported earnings on Jul. 13. Quarterly estimates have fallen 3.8 cents a share in the past month.

JPMorgan is currently trading at a price-to-forward-earnings ratio of 11.03 based on the 12-month estimates of 30 analysts surveyed by FactSet.

Although banks are generally expected to perform well during periods of rising interest rates, the sector has struggled along with the rest of the markets this week. The Financial Select Sector SPDR Fund ETF , has fallen nearly 6% in this week’s sharp selloff, sparked in part by fears the Fed’s moves to raise rates may slow economic growth. JPMorgan shares have fallen about 5.5% during the selloff.

Cramer thinks the Federal Reserve is behind the sell

CNBC’s Jim Cramer wants the Federal Reserve to reconsider its decision to steadily increase interest rates despite concrete signs of inflation because of the turbulence it’s causing financial markets.

“I don’t like what’s happening at the Fed because the Fed has decided, like [Fed Chair] Ben Bernanke in 2005, ‘we’ve got to put a stop to this’ ‘ even as they knew absolutely nothing in 2007,” Cramer said Wednesday on “Power Lunch.”

Cramer famously vented his frustration in 2007 about Fed members ignoring signs of the upcoming financial crisis.

  • Publisher: CNBC
  • Date: 2018-10-10T14:48:47-0400
  • Author: Author link
  • Twitter: @CNBC
  • Citation: Web link

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