Jim Cramer says he sees little reason to buy stocks right now
CNBC’s Jim Cramer said Tuesday he remains cautious on stocks, but stressed he is not abandoning the bull market.
“I’m not a bear. I’m neutral right now. I’m just waiting for something to hang my hat on before I pull the trigger,” said the ‘Mad Money’ host.
“A lot of inexperienced players in this market continue to confuse my caution with a belief that the whole market is going down. I just want to reduce the chances of the stock market being hammered” after buying a stock, Cramer said.
Overall, Cramer said part of his hesitation was that he wasn’t sure three major overhangs – rising inflation, the delta variant of the coronavirus, and a change in Federal Reserve policy. – have really been resolved in the short term.
“East [the Fed] really on hold? ”Cramer asked rhetorically.“ I thought they were on hold because of concerns about the delta variant. If Covid peaks, there’s a chance they’ll start talking about crunch again, although I know it [Chairman] Jay Powell would prefer not to. Unfortunately, the data could make that difficult, unless inflation has really peaked, in which case the Fed is no longer a problem. “
“Here’s the problem: I have no belief in any of these scenarios. They are possible,” Cramer admitted. However, Cramer said he had “no idea” if they were likely, which plays into his cautious opinion this month.
September has been a historically tough month for stocks, a fact Cramer has consistently highlighted in recent days as the market struggled. The Dow Jones Industrial Average is down 2.2% this month, while the large S&P 500 and the tech-heavy Nasdaq Composite have slipped more than 1%.
As for when it might finally be time to buy, Cramer said he would look for times when a stock doesn’t go down if there is bad news and still doesn’t fall the next day when that same bad news comes into play. evidence by stock analysts.
“It tells you the pain is over,” he said. However, we may have to wait until the second week of October, when the peak seasonal pain period (…) is over, “Cramer added.” Finally, let’s just say we need inventory to stop suffering big drops on nothing. “