Nov 18, 2025 · 44 min
Cramer separates routine sell-offs from true bear markets
Mad Money w/ Jim Cramer 11/17/25
The distinction shapes whether investors hold steady, buy incrementally, or protect cash before a crisis deepens.
- 1Ordinary pullbacks can create buying opportunities, while financial crises demand protection for near-term cash needs.
- 2Young investors can take more growth-oriented risk, but should add money systematically rather than chase sharp moves.
- 3Sustainable dividends matter more than eye-catching yields, and limit orders can impose discipline during volatile declines.
Don't miss
Cramer revisits his March 2009 call that the market had likely reached a bottom, calling it his strongest contrarian call.
The brief
Jim Cramer opens with the central investing problem: not every market decline means the same thing, so investors need a response matched to the kind of sell-off.
For young investors, Cramer favors more growth-oriented risk; after disappointing earnings reactions, he recommends buying incrementally at predetermined prices instead of all at once.
The 1987 crash and later flash crashes illustrate how declines can become opportunities, while the 2008–2009 crisis showed why near-term cash should leave the market.
Cramer revisits his March 2009 call that the market had likely bottomed, presenting it as a contrarian lesson rather than a repeatable timing formula.
The practical rules extend to dividends and sharp drops: favor sustainable payouts, distrust unusually high yields, and use limit orders when prices move violently.
What was said on this episode
27 statements · 15 positive · 8 negative · 1 mixed · 3 neutral
Market downturns eventually end.
“Tough days do not last forever.”
Listen at 0:37
Sell-offs may signal bear markets or present buying opportunities.
“They could be the start of a bear market, or maybe something worse. Or they might actually be just a buyable glitch.”
Listen at 1:14
Stock-market returns cannot be obtained without substantial risk.
“There's no magic trick that can get you returns from investing in the stock market without much risk.”
Listen at 7:08
The economy remained strong through the 1987 crash.
“The economy was strong going in the 87 crash, and it was strong coming out of it.”
Listen at 7:40
Black Monday was unrelated to economic fundamentals.
“There just wasn't any economic correlation with Black Monday at all.”
Listen at 7:44
Young investors should favor growth funds.
“I want you to be in growth, growth, growth, because they're young.”
Listen at 9:20
Investors can switch from growth funds to index funds in their thirties.
“You can switch to index in the 30s.”
Listen at 9:23
Investors should buy incrementally as a favored stock declines.
“You buy a little bit at the beginning. And then like we teach at the club, you buy it on the way down.”
Listen at 10:09
Stocks became buyable after the 1987 crash subsided.
“So it made sense to buy stocks when the smoke cleared.”
Listen at 11:32
The 2010 flash crash was not caused by economic fundamentals.
“It wasn't the fundamentals.”
Listen at 12:59
The 2010 flash crash created a major buying opportunity.
“On air, I called it a phony sell-off because the decline had no basis in economic reality, which made... for a tremendous buying opportunity.”
Listen at 13:18
Investors should remove five-year cash needs from stocks.
“Whatever money you may need for the next five years, please take it out of the stock market right now.”
Listen at 22:04
The market fell another 40% before reaching its bottom.
“Well, sure enough, the market fell another 40% for a bottom.”
Listen at 22:17
Dividend investors should favor financially solid companies and reinvest dividends.
“What I want are very solid companies with good balance sheets to pay dividends that we reinvest constantly.”
Listen at 27:04
A doubled yield after a broad decline may indicate an accidental high yielder.
“If a stock typically yields, say, 2%, suddenly it's paying double that because of a market-wide decline, then you're probably looking at an accidentally high yield.”
Listen at 29:00
Investors should avoid market orders during crashes.
“Only don't use market orders because you might end up getting terrible prices. Frankly, you should never use market orders because it's especially stupid during a crash.”
Listen at 29:37
Margin-driven selling typically intensifies between 1 and 2 p.m.
“I always consider the margin clerk the butcher, and the butchering occurs between 1 and 2 o'clock.”
Fed monetary expansion makes most market declines buyable.
“As long as the Fed's printing money, almost every decline is a viable one.”
Listen at 31:16
The Federal Reserve's rate hikes caused the Great Recession.
“It caused the Great Recession.”
Listen at 31:49
Federal Reserve rate hikes do not necessarily cause market crashes.
“Fed rate hikes don't necessarily lead to crashes.”
Listen at 32:10
Every person should hold some physical gold.
“I believe that every person should hold some gold, preferably bullion.”
Listen at 32:29
Yields above 5% on short-term Treasuries draw money from stocks.
“When short-term treasuries give you more than 5% risk-free, lots of people cash out of the stock market and park their money in treasuries.”
Listen at 32:56
“If the selling runs is course by 2.45 p.m., yes, I find it's actually that specific. Then I think you have a decent chance to start buying safety stocks”
Listen at 36:02
Internationally driven market declines often last three days.
“These international declines often last for three days.”
Listen at 37:14
Most non-systemic sell-offs will become long-term buying opportunities.
“unless they involve systemic risk, which is increasingly rare, like in 2007-2009, they're going to prove to be buying opportunities long-term.”
Listen at 39:37
Investors adding money should invest on a fixed schedule regardless of market conditions.
“You literally want to do it straight line. You don't want to care about the market at all.”
Listen at 40:52
A stock passes the Rule of 40 when growth plus margin exceeds 40.
“over 40, then it's a keeper.”
Listen at 42:53
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Books & mentions
Some links are affiliate links — PodLume may earn a commission if you buy.
Weekly email
State of the Pod, every Monday
The week's most-discussed names and stories from podcasts, with the moments behind them. Free, five minutes, unsubscribe in one click.