What Jim Cramer Said

It is now only a footnote to the financial meltdown we experienced last week, but it is still worth a quick mention.

On Monday October 6, an extremely solemn James J. Cramer, the very smart and very hyperbolic stock picker who has his own cable TV program, came on the Today show and said if you had any money in the stock market that you are going to need within the next five years, take it out immediately.

Most people gasped. They figured it was the ultimate bearish signal.

My reaction: Well, of course.

Stocks go up. Stocks go down-and down by a lot recently. Since you can't time the market you NEVER want to have money you are going to need in the short term (to make a tuition payment; to fund a down payment for a house) in the stock market.

My rule of thumb has always been if you are going to need the money within two years, it should be something ultra-safe like a CD. But if you want to extend that time horizon to five years, I won't complain.

Jim Cramer was just offering sound advice to the very conservative, and that is never a bad thing.