Mad Money w/ Jim Cramer Mad Money w/ Jim Cramer 6/13/25
Jun 13, 2025
The host delves into effective stock trading strategies and the importance of preparedness for market declines. Historical market crashes, like Black Monday and the 2007-2009 financial crisis, provide context for current investment decisions. Strategies for navigating volatility and understanding market sell-offs are discussed, emphasizing discipline and assessing psychological investor responses. Listeners gain insights on margin risks, the impact of Federal Reserve policies, and the significance of strong fundamental analysis in making savvy investment choices.
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Cramer's Black Monday Experience
- Jim Cramer experienced Black Monday 1987 firsthand and calculated the market bottom at Dow 1,400, which was lower than many thought.
- Fed Chairman Alan Greenspan intervened with liquidity, stabilizing the market with a strong rally shortly after.
1987 Crash Was Mechanical
- The 1987 crash was caused by market mechanics, not economic fundamentals, highlighting the power and impact of futures markets.
- Futures trading overwhelmed actual stock performance, causing a crash despite a strong economy.
2010 Flash Crash Breakdown
- During the 2010 flash crash, machines broke down causing a sudden 36-minute market drop by about 1,000 points.
- Cramer called it a phony sell-off with no fundamental basis, recognizing it as a mechanical market failure.
