Jim Cramer on Market Volatility and Investment Opportunities in a Bull Market

Jim Cramer, the host of CNBC’s “Mad Money” and a prominent financial influencer, has recently expressed his opinion that the market has already decided that the Federal Reserve “is going to tighten and create a recession no matter what.”[0] Despite this, he believes that the market is still in a bull market, and advises investors to buy the bottom.

In a tweet, Cramer said that “Price stability… is right around the corner,” adding that the Fed “just needs to be aware there’s really only one area of strength left in this entire economy.”[1] He believes that many stocks that have rallied this year after a tough 2022 should be avoided, especially those that were shorted heavily.[2]

He also warned investors about the confusion over whether the Fed has tamped down inflation enough due to the bifurcation in the economy between the booming services side and the bust goods side.[3] The wealthy have not seen a dent in their spending power, which has allowed them to continue to spend on retail and travel.[3]

Cramer concluded that investors should be prepared for the down days in a bull market and should not bet against it. He also said that stocks should have a real earnings cushion with real buybacks or dividends, and that understanding the difference between hype and reality is important. He recommended industrial stocks like DuPont and Linde, which are “all about reality.

0. “What impact will the next recession have on the global economy? Jim Cramer of mad money gives us his opinion” Royals Blue, 7 Feb. 2023, https://www.royalsblue.com/what-impact-will-the-next-recession-have-on-the-global-economy-jim-cramer-of-mad-money-gives-us-his-opinion

1. “Jim Cramer says price stability is right around the corner” CNBC, 9 Feb. 2023, https://www.cnbc.com/2023/02/09/jim-cramer-says-price-stability-is-right-around-the-corner.html

2. “Jim Cramer Names 10 Stocks He Thinks Have ‘Room to Run’” News-Daily.com, 9 Feb. 2023, https://www.news-daily.com/arena/jim-cramer-names-10-stocks-he-thinks-have-room-to-run/article_8153d89d-08f0-521b-adea-abdf19253c98.html

3. “Jim Cramer Says Fed Closer To Victory In Inflation Battle – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Bed” Benzinga, 10 Feb. 2023, https://www.benzinga.com/analyst-ratings/analyst-color/23/02/30848920/jim-cramer-says-fed-closer-to-victory-in-inflation-battle-powells-likely-made-more