- CNBC’s Jim Cramer said Tuesday that it would be wise for investors to wait until after the next rate hike to buy.
- “Right now, your best bet is to wait for the next interest rate hike to trigger the next selloff in stocks — then buy,” Cramer said
CNBC’s Jim Cramer told investors on Tuesday that it would be wise to hold off on buying until interest rates rise and the resulting selloffs make stocks cheaper.
“Right now, your best bet is to wait for the next interest rate hike to trigger the next selloff in stocks — then buy,” Cramer said. “If you are able to think long-term, you can do well with companies that are doing well, but you have to be willing to stay the course.”
Cramer suggested that there is a “gap” between the actual value of certain companies and the current market price of their shares.
He cited several companies that reported Tuesday: Coca-Cola, 3M, RTX, General Electric and Verizon. With the exception of GE, Cramer said those companies appeared to be performing poorly but were recovering based on their reports. He attributed those gains in part to the low expectations investors had for the report.
Cramer said it wasn’t worth the risk to “bet on a beat-and-raise quarter” that may depend on the performance of S&P 500 futures.
“You have to run an incredibly tough gauntlet to get these points,” he said. “I would argue that given the nature of this market, it’s almost better to just wait for the averages to come back down before buying. I bet there will be another opportunity.”
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