- CNBC’s Jim Cramer laid out five scenarios on Wednesday that could improve the market and help interest rates peak.
- Factors include weaker economic data and more buyers in the bond market.
CNBC’s Jim Cramer laid out five scenarios Wednesday that could improve the market.
For Cramer, interest rates need to stabilize for stocks to trade based on company fundamentals, and these factors could help interest rates peak.
Other buyers on the bond market: Cramer said there must be more buyers than sellers in the bond market. He believes this could happen if bond yields rise and prices fall.Weaker economic data: Weaker economic data would allow the Federal Reserve to ease interest rate hikes, Cramer said.Redundancies: As long as job growth doesn’t stop and job losses don’t start, Cramer says interest rates will continue to rise.Cheaper stocks: For Cramer, the market could continue to fall unless stocks reach a point where selling no longer makes sense. He said the “tyranny of the bond market” could end once bonds had an attractive yield or stocks had an attractive price.Escape to safety: Cramer said a “flight to safety” may be needed, where uncertain conditions such as geopolitical turmoil cause investors to move from risky assets to safer assets such as government bonds.“All of these things will ultimately create an investable moment,” Cramer said. “Until then, however, even the moves of the best stocks are just trading.”
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