Business

Jim Cramer tells investors to ‘stay the course’ as markets continue to shake

CNBC’s Jim Cramer told investors that they shouldn’t lose faith in the market’s ability to recover after Wednesday’s declines.

“History is very clear: It says you must stay the course. The S&P 500’s already had a successful 50% retracement of its huge decline, and in the 21 times that’s happened since the Great Depression, it’s meant the decline is over every single time,” Cramer said, noting that the averages retraced 50% of their post-November decline after yesterday.

“Could this time be different? Sure, but don’t ignore the very real possibility that good things can happen, too,” he added.

The “Mad Money” host, who cautioned investors against unwarranted optimism on Tuesday, cited information from legendary market technician Larry Williams for his analysis of the markets’ future course. Cramer has relied on Williams’ analysis to make market predictions in the past.

Cramer listed several factors, in addition to the pattern Williams spotted, that suggest the markets could recover, including the Russia-Ukraine war seeming to enter a stalemate, which could potentially lead to an end sooner than later. 

He also pointed to the Federal Reserve’s recent interest rate hike, Fed Chair Jerome Powell’s strong comments on inflation and the Covid-19 pandemic potentially ending soon as additional market factors.

“This is a brutal environment with a lot of truly awful possibilities, and I wouldn’t be surprised if tomorrow’s worse than today. … But at moments of extreme doom and gloom, like I saw today, I need you to remember that the bears could perhaps be wrong,” Cramer said.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagram

Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com

Products You May Like

Articles You May Like

Doing Tax Policy at the Ballot Is Not for the Faint of Heart
Who Are America’s Missing Workers?
New York sues Donald Trump, company and family members over widespread fraud claims, seeks at least $250 million in penalties
Mortgage demand rises for the first time in six weeks, despite sharply higher interest rates
Bond yields soar as markets weigh threat of a recession. What it means for your investments

Leave a Reply

Your email address will not be published.