Jim Cramer in NYSE, June 30, 2022.
Virginia Sherwood | CNBC
Jim Cramer of CNBC said Thursday that long -term investors should present themselves as stock market tanks on the announcement of President Donald Trump’s tariff.
During “Squawk in the street,” said Cramer, “if you were going well in 2007 and 2008, he returned”, referring to the financial crisis and the way the market finally recovered.
“It took until 2013 to recover the money,” said Cramer, recognizing that investors who need their money now, like retirees or those approaching retirement, are “in limbo”.
“But don’t sell, hold on,” concluded Cramer. In fact, by following these comments, he in fact bought more shares of two shares for the CNBC Investing Club portfolio which should not be down as much as they are.
The current market dive is an event of drop in the price / benefit ratio, he said. “This is what is happening. Once it happens, so I think you really have to start thinking:” It’s interesting. “He will get there.”
P/ E ratios are a standard way to Wall Street to assess what investors are ready to pay for shares. The current multiple multiple on long -term income (following 12 months) for the S&P 500 is just above 20. The p / e trained, which examines the last four quarters of the reported income, was closer to 25.
Cramer used the financial crisis as analog and reflected the advice he then given. “I came on the ‘TODAY’ show in 2007 and I said:” If you need money in the next five years, you should sell. “And it was a great call.” He continued: “Then I entered the” hatred hatred “. Mark called me, the late Mark Haines, and he said, “You have to get started. I got out and I did that.”
Mark Haines was a CNBC anchor credited with the call, while in the antenna, the market for the financial crisis market on March 10, 2009. The legendary call became the “Bottom”.
Cramer has always had great respect for hatred, with which he fought on actions every morning at the time. Thursday, Cramer said that the problem with the advice he gave at the time is that people remember that the call for sale and not the call to return. He has warned this phenomenon over the years as a reason not to try to timed the market with major professions. This is because investors who want to come back finally must finish twice: first on the sale and second on the buyout at the bottom.
With this state of mind, Cramer examined the sale of the market on Thursday more through the objective of how it can benefit from the fear of all the others and adhere to the names that can resist a Trump pricing environment.
