CNBC Jim Cramer On Wednesday, he said he was still “attracted by owning shares.” Federal Reserve Aggressively raise interest rates in a way that some skeptics believe will put the US economy in recession.
“They were probably touted for today’s rally. Because this is them, they will be for sale again tomorrow.” “Seriously” Host said, see Rapid increase in the second half of the session on Wall Street I saw it S & P 500 When Dow Jones Industrial Average Post the biggest daily profits since 2020.
Stock prices rise in response to the Fed Increase the rate by 0.5 percentage pointsWas widely expected, and chaired Jerome Powell Excludes future 75 basis point increases.
The intensity and breadth of the rally after Wednesday’s announcement suggests that some investors believe the Fed can stab inflation with tighter policies without causing a major recession. .. But Kramer said he believes Wednesday’s relief rally will not upset loud federal skeptics.
He acknowledged that there was uncertainty about the ultimate impact of the Fed’s 50 basis point increase. Prior to Wednesday, the last time the US central bank raised interest rates by 0.5 percentage points in a single meeting was in 2000. A quarter percentage point increase is typical.
“So, from tomorrow, we will prepare for the worst again and anticipate the worst … and unless the money manager knows who they are, they shouldn’t do what they should. We will continue to sell, “Cramer said. “But if you’re in my camp, you’re attracted to owning stock here because there are many companies that can work, even if a more bearish camp turns out to be right. ”
Based on his economic outlook, Kramer emphasized both the individual companies and the broader sectors he believes can work from here.For example, he said he likes Advanced Micro DevicesWe’ve been struggling this year so far, but it just reported strong earnings and forward guidance.
He said he was in a good financial position. “Remember that banks are instantly profitable when the Federal Reserve raises short-term interest rates,” said Charitable Trust, which owns two banks, Wells Fargo and Morgan Stanley. Mr. says. He mentioned the bank’s net interest income. This is the income from the loan after the bank deducts the amount it pays to the customer in deposits.
“High-tech stocks tend to be strong when inflation peaks, so you can buy tech stocks, but high interest rates mean that those who lose money won’t get to the promised land, so profitability. I would like only high-tech stocks with high prices, “he said.
Disclosure: Cramer’s Charitable Trust owns shares in AMD, Morgan Stanley and Wells Fargo.
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