CNBC's Jim Cramer continued his discussion of last week's massive decline, explaining why it can be difficult for investors to recognize and take advantage of a market bottom.
"There will be other buying opportunities in the future, other crazy sell-offs, but let's remember that, very often, these market meltdowns are driven by nothing," he said. "What happened two weeks ago was pure market mechanics—nothing to do with the fundamentals—so keep that possibility in mind the next time the averages get clubbed.
To Cramer, these factors turned out to be "incredibly flimsy reasons to sell," saying the carry trade issue was "a one-off," not a persistent problem. He also indicated that Berkshire Hathaway's moves might not truly be cause for alarm, saying some investors follow Buffett and "end up extrapolating to the point of absurdity."
Cramer also described why buyers fled during the sell-off, saying some were unimpressed with earnings season so far. He said while some companies are doing well, many didn't raise their full-year forecasts, which makes their stocks less attractive to Wall Street. "So, very few stocks seemed like enticing buys at that moment," he said. "Even though the selling turned out to be based on pretty much nothing, hardly anything looked like it was pounceable, so to speak, like you wanted to buy it on the dip."
Nederland Laatste Nieuws, Nederland Headlines
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