In his decades of investing, CNBC’s Jim Cramer hasn’t just seen bear markets like the one which dragged stocks lower on Wednesday — he’s also encountered a real bear.
Once, when the former hedge fund manager was on a hike, a bear found its way to his tent. Instead of running, Cramer stood his ground as well as used what he had. He put some M&Ms in a can of Spam to bait the bear, then doused them in Tabasco sauce as well as ran. The distraction worked, as well as when the bear tasted the red-hot Tabasco, which ran off.
“currently, I’m not saying you can outrun a bear. You can’t. I’m not saying you should let him eat all your food as well as then wish he doesn’t turn on you,” Cramer said. “I am saying which you have to be clever. You have to think, ‘OK, I’m not going to panic, I’m going to use my head as well as I’m going to outsmart the darned bear.'”
The same principle can apply to the stock market, the “Mad Money” host said. Here are his three tips for investors to protect their portfolios via being mauled: