Pulling Apple and Amazon for examples, he described how some on Wall Street can get spooked by analyst downgrades, which can cost them down the line.
"Analysts and commentators love to take aim at big long-term winners," he said."Their jeremiads have scared so many people out of some amazing gains."on Tuesday described why it can be difficult for investors to sit on solid stocks. Some can get spooked by analyst downgrades, for example, and sell their position in a great company that will be hard to later buy back."In the last decade, the toughest thing to do is to hold on to good stocks," he said.
According to Cramer, many on Wall Street can be"complacent," with bulls ignoring downside risks and bears ignoring opportunities. If investors want to take action on a downgrade, it's wise to wait for a bounce to sell. Then, buy back at a lower price, but that is"incredibly hard" to achieve, even for talented traders, he said..
Both stocks sold off heavily on Monday, he pointed out, but they recovered by Tuesday — hampering investors' chances of buying back shares if they sold during the previous session. "I need you to understand that when analysts downgrade after stocks have already been hammered, when really good investors ignore the positives, then, it may be a grim time," Cramer said."But not so grim that we can't make money by focusing on the fundamentals of the companies."Cramer's Lightning Round: SLB is a buy
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