July 31, 2008; Jim Cramer Calls a Bottom Already In!!

Jim Cramer called a bottom in the stock market already being in, here's the article from CNBC: http://www.cnbc.com/id/25932873.

Those who know me, know that I think is couldn't be farther from the truth. Cramer says we will not test the lows of July, and that folks should buy every dip they can because the bottom is in, and if people don't buy now then they'll miss out on the next big bull run. I completely disagree and think this is extremely dangerous advice. Cramer is an entertainer now, not a money manager (other than for charity). People need to keep that in mind if they plan to follow his advice. Cramer also called a bottom in March when the Dow went to around 11,600. But he was wrong then as the Dow eventually fell about 1,000 points below that level. I think he's wrong here again.

Bottom line: this bear market is far from over, and the next big wave of selling will absolutely destroy the July lows and shave at least 2,000 points off the Dow in a matter of a couple/few weeks, and probably much more. And that still won't be the end of it. We are expriences credit deflation, just look at the housing market which is in a depression, where extraordinarily high prices for things are now coming back down to earth. You can't correct over 30 years of credit inflation in just a few months and a few thousand Dow points. We have much further to go. My price target for the Dow is 7,000 at a minimum, before I start looking for signs of any significant bottom.