September is the cruelest month of the year for investors, Jim Cramer reminded his Mad Money viewers Monday. That’s why the prudent thing to do is get ahead of the masses and raise cash now.
Last week, Cramer checked in with colleague Larry Williams, who noted that September 17th is historically the high point of the month, with market-wide declines likely thereafter. In the meantime, we’re likely to see a rotating cast of market leaders, few with any staying power.
Today, we saw gains in the oil patch, with stocks like Occidental Petroleum (OXY) – Get Occidental Petroleum Corporation Report up 6.6% and Devon Energy (DVN) – Get Devon Energy Corporation Report gaining 3%. But Cramer noted that once oil prices get too high, producers turn on the spigot to bring prices back down. Adding to the confusion are shutdowns from hurricane Ida, once again weighing on oil, chemicals and manufacturing.
Among the few bright spots, according to Cramer, was Wells Fargo (WFC) – Get Wells Fargo & Company Report, which ended the day up 3.2% despite being fined an additional $250 million for its past indiscretions. Cramer said the fine, while huge, was less than many investors had feared.
We’re like to see more rolling corrections like we saw today, Cramer concluded, which is why investors need to use any strength to raise cash and buy some gold ahead of September 17th.
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Bristow said the business at Barrick “couldn’t be better” as the company continues investing in their future while also delivering stable cash returns for their shareholders.
Mining is, after all, a consumptive industry, Bristow noted. For every ounce of gold you take out of the ground, you must replace it additional reserves. That’s why Barrick has a long history of providing sustainable, profitable growth.
Even in Nevada, a state long thought to largely be out of gold, Barrick has discovered new opportunities Bristow described as “huge.” The rewards in Nevada will be fantastic, he said.
Finally, when asked whether he’d rather invest in gold or bitcoin, Bristow said that gold remains the only way to truly hedge your risks. Bitcoin goes down in value just as often as it rises, he said, leaving gold as the only stable reserve of wealth.
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At the time of publication, Cramer’s Action Alerts PLUS was long WFC.