Stay Alert & Stay Hungry - CardoneZone

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• published: 06 May 2014
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In today's show Grant discusses the changes in the economy and the need for everyone to stay alert, together and hungry for success and opportunity. OPEN Unemployment numbers improved Stock market still up Talks of housing Construction job and cranes I want you to ignore the good news... Better yet don't ignore it -- use it to WARN you. When it sounds to good to be true you must go on ALERT.... This is the one thing that has allowed me to grow through every economy. STAY ON GUARD AT ALL TIMES.... TODAY I RECEIVED A LETTER FROM FEDERAL RESERVE.... Wondering why the market can't really break out? Jim Cramer is, too. "The vast majority of earnings have been very strong and our economy is improving," he said, so you'd think it would be smooth sailing for stock investors. But it hasn't been. Cramer SUGGEST THAT some headwinds aren't only blowing, the gusts are getting worse 1. International "For much of last year, we could count on at least one part of the world, besides the U.S., to be doing well," but not now, Cramer said. Europe has stabilized, its various economies appear to be stalling. "We're seeing growth get revised down across the continent." China is no better. "This once-double-digit growth economy will be lucky if it can mount a 6 percent advance this year. 1. STAY ON GUARD 2. MAKE MORE 3. SAVE MORE 4. INVEST IN THINGS THAT ONLY IMPROVE IF THINGS GETS WORSE BREAK Unemployment numbers improved Stock market still up Talks of housing Construction job and cranes I want you to ignore the good news... Better yet don't ignore it -- use it to WARN you. When it sounds to good to be true you must go on ALERT.... 2. Financials "The problem is that the financials are a huge part of the S&P; 500, and when they're bad, they can shoot down any market," Cramer said. And right now, Cramer says at least two big banks are in bearish crosshairs. "Last week Bank of America suspended its buyback and its planned dividend boost because it turned out the company had overstated its regulatory capital by $4 billion. Yep, a $4 billion error," he said. Shares dropped about 10 percent on the news. "Then JPMorgan announced in a filing on Friday night—Friday night!!—that its business is off huge, with its trading revenues declining as much as 20% for the quarter." With these and other developments, shares of JPMorgan have slipped 9 percent for the month. 3. Housing Cramer says housing, once a tailwind, has become a real problem for this market. "This morning, Realogy, the giant real estate brokerage company, reported extremely disappointing numbers and gave an outlook of doom, saying that tough credit standards coupled with rapid home price appreciation and low inventories will make this a difficult year." Because housing feeds so many other areas of the economy, weakness in this sector is a particularly difficult challenge for stocks. 4. Retail Cramer believes the sudden resignation of Target's CEO is about more than just the security breach. "This morning Target canned Gregg Steinhafel, the CEO who saw his customers hacked by the millions. Why does this matter? Because, believe me, if Target's business had turned, Steinhafel would still have a job." All told, without retail, housing, banks or global growth -- WHAT HAPPENS TO ECONOMY? WHY ARE 10 YEAR TREASURIES GOING NOWHERE WHEN IT WAS PREDICTED THEY WOULD GO OVER 3% " don't want to be a downer," he said. WE have some huge headwinds, and unfortunately they look to be getting worse, not better 1. STAY ON GUARD 2. MAKE MORE 3. SAVE MORE 4. INVEST IN THINGS THAT ONLY IMPROVE IF THINGS GETS WORSE GrantCardone.com http://www.grantcardone.com Twitter http://www.twitter.com/grantcardone Facebook http://www.facebook.com/cardonesuccess Instagram - @grantcardone http://www.instagram.com/grantcardone