The current bad investor sentiment in the market could soon lead to a market crash, CNBC’s Jim Cramer said on Monday.
“We also need… to make everyone believe that the market can only go down. We need mass surrender. The sales are crescendo like in times of Covid. Or even when, in 2009, the big banks nearly went bankrupt. Only then can we achieve a sustainable rally,” said the Mad Money host, referring to the aftermath of the financial crisis that lasted from 2007 to 2008.
“With sentiment already so negative, the bottom could come sooner than you think,” he added.
Cramer’s comments come at a time when Russia’s intensifying invasion of Ukraine continues to rock Wall Street after weeks of instability. The S&P 500 broad market index fell 0.7% on Monday. The Nasdaq fell 2.04% and the Dow Jones Industrial Average remained unchanged.
Bond yields rose ahead of the Federal Reserve’s expected announcement of a quarter-point rate hike after a two-day meeting ended Wednesday. The move, meant to help contain soaring inflation, is the first of several interest rate hikes the Fed is expected to make this year.
Cramer said that while some stocks are in a bull market, including health care stocks, investors should be patient in anticipation of a sharp rally.
“We need to get through this difficult period and we will get through it,” Kramer said.