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Gekko: Pessimism is good 3 minutes ago On Friday May 14, 2010, 11:14 am EDT
Greed is good?
Well, not so much, Cramer said Thursday. Too much greed usually means that a market top is approaching, a moment when stocks will soon run out of upside. He prefers a different take on the line made famous by Wall Street's Gordon Gekko: Pessimism is good.
Pessimism, skepticism - take your pick. The important thing is that both of them keep greed in check. And they're usually a sign that stocks still have room to move. In fact, the more doubt Cramer sees in the market, the more bullish he becomes.
"You know we're in trouble when people get too enthusiastic - that is the sign of a top, not a bottom," Cramer said. "But when they're pessimistic, when they're skeptical, that's how you know the market still has fuel to run."