CNBC’s Jim Cramer said Thursday that investors looking to successfully navigate markets devastated by inflation, geopolitical concerns, and Covid should do two things: buy discriminatory and explore. Said that.
“It’s hard to intrigue …. But in the long run, curiosity tends to be a much better bet. [than panic].. For now, I think curiosity isn’t about selling stocks indiscriminately, it’s about buying them selectively. “Flirt“The host said.
Dow Jones Industrial Average fell 3.12% Thursday Meanwhile, the Nasdaq Composite plunged 4.99%, with both declines recording the worst losses in the day since 2020. The S & P 500 fell 3.56%, marking the second to worst day in 2022.
The dire performance of the market the next day Federal Reserve It announced that it would raise interest rates by 50 basis points and start tightening its balance sheet in June.
“For now, the market is anticipating the worst-case scenario, and I think it’s likely that we won’t get it,” Kramer said.
He added that curious investors should ask a few questions to measure market conditions and the future. Here are some of the notable questions that Cramer has outlined:
- Are all companies less valuable today than they were yesterday when the stock market recovered? Kramer said the answer was no. “If we only get clues from the bond market, we’re heading into a world of high inflation where the Fed must aggressively raise interest rates, which means we should buy stocks that work well with a slowdown in high inflation,” he said. .. He said.
- Will the war between Russia and Ukraine or the blockade of China last forever? Kramer reminds investors that this is not the case, Nike When Starbucks After the blockade in China, you can see a huge snapback rally.
- Is inflation really deeply rooted in the market? “When only oil and natural gas continue to hit new highs, this inflation is probably more likely to be beaten than most people would expect,” Kramer said.
- Is your company’s bottom line still important? Yes, yes, Kramer said, added it AMDStocks are buys, even at low levels.
He also said that now that he has money on hand, it could be a great buying opportunity for investors looking to add to their portfolio.
“If you’re on the sidelines of enough cash, the market is selling to everything, including well-yielding stocks that outperform earnings,” he said.
Disclosure: Cramer’s Charitable Trust owns a stake in AMD.
