Jim Cramer’s guide to investing: Don’t assume market action always makes sense

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CNBC's Jim Cramer told investors market action doesn't always make sense.

CNBC's Jim Cramer warned investors that market action may not always make sense. Stocks can move up or down for no obvious reason.

CNBC's Jim Cramer said he spends a lot of time helping investors deal with their mistakes. Market action doesn't always make sense, he explained. Stocks can go up or down for unknown reasons. Like any other market, Cramer said, the stock market is prone to distortions. He stressed that stock prices do not solely reflect a company's fundamentals. Perceptions on Wall Street and the mechanics of money management also play a factor.

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