Five reasons, according to Jim Cramer, not to invest in individual shares

Investors should always look for potential profits and take into account the potential risks when buying stocks because anything can happen in the markets, says Jim Cramer.

Currently there are five "dangers" around the choice of individual stocks, and investors will really have to cling to buying them. From the top airplane manufacturer to the top social platform, through the prism of politics, negative news can change the direction of the stock within seconds.

"I will give you five reasons why it is difficult to make money in the markets ... and prepare you for the inevitable consequences of having individual shares." "Cramer concludes in his show, Mad Money on CNBC.

There are many advantages to owning separate shares, but the "hot trend" is now investing in indexes.

Boeing

Boeing's shares boosted momentum, rising twice since the beginning of the year, with no risk at first sight. Or at least until their 737 MAX aircraft was involved for the second time in a fatal accident within five months.

According to Cramer, 737 is the main engine of growth for Boeing's shares, but after the events they collapsed by 49% in days.

Dollar General

"Dollar" stores have proven to be one of the best places to invest in history, Cramer said. Dollar General was telling a really great story, but only until the company announced a much weaker performance and cut off its forecast for growth a year.

Shares fell by 7.5% this week. Currently, they have a fairly good discount and are attractive for purchases, but at any moment analysts can recommend them for "sell".

Johnson & Johnson

Cramer puts J & J on the list of his favorite stocks, especially after Alex Gorsky's new management. According to him, the company has the most balanced reporting, offering a dividend and an excellent redemption program.

The company, however, lost a $ 29 million lawsuit on Wednesday against a cancer patient who accused the company of having its products containing asbestos.

The shareholders held the shares for the sake of the name, the security of being able to sleep peacefully if you own J & J shares. Their shares, however, wiped out 1% of their value this week. Cramer is already considering removing them from his list.

Facebook

Cramer thought the worst for Facebook was over until the latest serious charge was filed against the company for sharing personal data with consumers.

The waterfall of questions does not stop, but big meetings are done secretly and the investors will not receive news from prosecutors or from the company. Also, on Wednesday, Facebook suffered a serious technical problem, and CPO Chris Cox left the company.

Shares are about to record their worst performance ever.

Brexit

Brexit has made stock ownership a very difficult task, says Cramer. Yesterday, Parliament voted to extend the Brexit vote by three months, which must be approved by the EU.

According to Cramer, he heard from his source, if Hard Brexit happened from the European Union, there would be a sharp disruption of food supplies in the UK within days.

"On the one hand, who wants to own shares when we're worried about London's food supplies?" "If the market is crushed because of the fears of Brexit, there's a pretty good opportunity for new purchases." - says Cramer.

"If you want to get out of the markets, better invest in indexes." - advises Cramer

Source: CNBC

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