CNBC’s Jim Cramer on Tuesday urged investors not to overreact to Wall Street’s recent declines, suggesting the weakness was long overdue and could eventually turn into an opportunity to buy quality stocks at a discount.
“After a day like today, all you can do is patiently hunker down and wait for lower prices,” Cramer said on “Mad Money.” “One way or another, I think we’ll get them.”
THE S&P500 And Dow Jones Industrial Average recorded their worst sessions in almost a month on Tuesday, down 0.72% and 1%, respectively. It also marked their second straight day in the red. The heavy on technology Nasdaq Composite fell 0.95% on Tuesday, after rising slightly to kick off the second quarter on Monday.
More declines could be on the horizon as investors grapple with rising oil prices and rising bond yields tied to stronger recent economic data, Cramer said. The market has been moving higher since late October and he said a pullback was finally in order. “What really matters is we haven’t had a liquidation in so long that we forgot to deal with it,” Cramer said.
In assessing the factors behind this week’s declines, Cramer said he wasn’t too concerned about the long-term implications for stocks.
“Yes, we have higher rates, but the impact on the economy is not profound,” Cramer said. “Meanwhile, the impact on the market is what you usually expect: people pay less for stocks when rates rise. We just kind of forgot what’s happening.”
cnbc
