Cramer Blames Faulty Predictions for Recent Market Downturn

CNBC's Jim Cramer reviewed recent market action, saying some of the downturn over the past several sessions was due to faulty predictions.

"Companies, and even the Fed, should not make predictions unless they know that the predictions are well within reach," he said."No one ever held it against you for being too conservative with your guidance."on Thursday reviewed recent market action, saying some of the downturn over the past several sessions was due to faulty predictions."Companies, and even the Fed, should not make predictions unless they know that the predictions are well within reach," he said.

According to Cramer, unmet expectations and aggressive guidance drove some of the recent sell-off. The averages have tanked as of late, and theInvestors were disappointed by commentary from the Federal Reserve after it cut rates by 25 basis points on Wednesday, Cramer said. The cut was widely expected, but Wall Street balked when the central bank indicated it intended to make two cuts next year, instead of the four cuts it teased a few months ago.

"In the world of Wall Street, if you make a prediction, you better beat it, or else your stock's going to get clobbered," he said.Jim Cramer explains what makes up the market's big picture today

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