CNBC’s Jim Cramer on Thursday advised investors to seize the moment and buy some stocks as the Federal Reserve appears to be nearing the end of its tightening cycle.
“When the Fed gets out of the way, you have a real window and you have to jump through it … When a recession comes, the Fed has the good sense to stop raising rates,” the “Mad Money” host said “. . “And that pause means you have to buy stocks.”
“I think this window has finally arrived and you don’t want to close it,” he added.
Stocks rose on Thursday despite the latest GDP data showing that US economic growth fell for the second straight quarter, according to the Bureau of Economic Analysis. Major indexes fell briefly earlier in the day after investors balked at the possibility of a recession, but recovered later.
Thursday is the second consecutive day of gains. The market rallied on Wednesday after the Federal Reserve raised interest rates by 0.75 percentage points and signaled it may take a more dovish approach with future rate hikes.
Cramer acknowledged that some stocks, such as homebuilders, will likely suffer from higher interest rates. He also noted that retailers suggest that Walmart and Target still face excess inventory that is a headwind for their business.
However, that doesn’t mean investors should stop buying, according to Cramer.
“This is a recession of excess inventory, not a recession of layoffs, and that means you can buy stocks if there’s nothing else bad from the Fed and/or Washington,” he said.
Disclosure: Cramer’s Charitable Trust owns Walmart stock.
[ad_2]
Source link
