Jim Cramer Advises Investors to Play it Safe

Credit: Unsplash

Cramer cautioned against being overly-optimistic.

Recently, United States Federal Reserve chairman Jerome Powell announced that the Federal Reserve would be taking aggressive moves in an effort to prevent inflation from overly-impacting the United States’ economy. The first of these moves is interest rate hikes, and as is often the case, these hikes have brought major volatility to the stock market, tanking some stocks and sending others soaring.

In lieu of attempting to gamble on these volatile stocks, CNBC’s Mad Money host Jim Cramer has urged investors to play things safe until the market cools off. “While I appreciate hope as a mindset, I’m not as confident as a lot of the buyers who are paying up. … We are seeing a level of enthusiasm here that to me feels unjustified. We shouldn’t be going back to a mentality where we like all stocks because so many of them will miss their numbers and still others will hit us with negative forecasts,” he said.

“Right now, we need to bow down to the Fed and the forces of inflation. Anything that brings down inflation, including tough statements from [Fed Chair] Jay Powell, will make big institutional money managers more likely to buy stocks rather than sell them. For the moment, that’s what controls the stock market,” Cramer added.

Written by  
2 years ago