Jim Cramer Gets Bullish and Says It’s Time to Start Slowly Buying Stocks

UTC by Christopher Hamman · 3 min read
Jim Cramer Gets Bullish and Says It’s Time to Start Slowly Buying Stocks
Photo: Owen Byrne / Flickr

Jim Cramer says that it’s high time to start buying stocks. He claimed this as there was a broad market selloff in the last trading sessions.

Jim Cramer has said that the current downturn presents various stocks buying opportunities. This comes as the Dow Jones Industrial Average (DJIA) fell by about 516 points to 23,247.97 points(2.17%). The Nasdaq Composite fell by 1.55% and the S&P 500 fell by about 1.7%.

The markets have gone into negative territory for the past two straight trading sessions. This could have been what prompted Cramer to make his predictions.

The market bears came into prominence because of overbought concerns by investors. The United States Federal Reserve added salt to the injury though. Sources say that the Fed Chairman Jerome Powell has expressed concerns about the U.S. economy. Powell had already indicated that the economy needed further support from the Fed.

Cramer Uses the Selloff as a Proof of a Stocks Purchase Point

Cramer said:

“These kinds of sell-offs usually last about three days. This one started yesterday. I’m betting things begin to improve tomorrow around 2:30 p.m. That’s when the best rallies tend to begin [and] it’s going to start with the food” and drug stocks.

Cramer went on to indicate a timeline when things will improve. He noted:

“If it doesn’t start by 2:30 p.m., wait until Friday. Then you can slowly start buying your favorite stocks in the Cramer COVID index because they’re the kind of names you can still confidently pick up into weakness here.”

The Cramer COVID index comprises of blue-chip stocks that are doing well at this time. The index fell by about 0.5% yesterday. Cramer went on to give his reasons why he created the index. The coronavirus situation has been around for a few months now with no signs of abating. Things have to continue moving forward. The COVID-19 index monitors stocks that can thrive under the current circumstances.

“You want stocks that can thrive in a world that looks a lot like today because that’s the world we live in,” said he.

Cramer continued to explain that yesterday’s trading session presented buying opportunities. The stocks he has been tracking in the COVID index had been falling all day.

Others Think That It Is Time to Buy Too

Other investment legends have also indicated that this is a good time to buy. Billionaire investor David Tepper also said something similar to Cramer’s comments. David said during CNBC’s halftime report that the financial markets were overvalued. He said that this is “maybe the second-most overvalued stock market” he has ever seen.

The 1999 market situation was the first. Most of the market is moving in the direction of fear. This is a good time to go in the opposite direction. At least that’s what the best investors do. Contrarian investing is the most fundamentally important investing principle to follow.

Cramer also indicated certain stocks to buy during this pandemic. He said that stock picks should be individual rather than general. He also indicated on Wednesday that there are certain stocks to avoid at this time.

Stocks in the real estate, banking, oil, early-stage biotech, and airline industries are to be left alone for now.

Barring a vaccine, things are going to remain the same. This is the new normal.

Editor's Choice, Indices, Market News, News, Stocks
Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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