- CNBC’s Jim Cramer said investors shouldn’t read too much into Monday’s stock moves, suggesting more important information will be revealed later in the week.
- “What should matter to you is how each company performs, and today we had nothing even remotely resembling facts about how stocks will perform,” Cramer said.
- “I recommend something that’s fairly prosaic, if not downright boring: the perfect moment to sit on your hands,” he said.
CNBC’s Jim Cramer said investors shouldn’t read too much into Monday’s stock moves, suggesting more key information to guide strategy will be revealed later in the week.
“What should matter to you is how each company performs, and today we had nothing even remotely resembling facts about how stocks will perform,” Cramer said. “If we make gains like we do later this week, oh boy, then we’ll have a reason to break the moronic bond-to-stock peg that, frankly, has plagued us for many, many months.”
Cramer suggested that bond yields had retreated from their highs because of prominent hedge fund manager Bill Ackerman’s Monday post on X, formerly known as Twitter. Ackerman revealed on the website that he had hedged his bet against long-term government bonds, citing geopolitical risks such as the war between Israel and Hamas. He also claimed that “the economy is slowing faster than recent data suggests.”
For Cramer, such a move is not something investors should hedge their bets on. He noted that certain travel and leisure stocks – such as Airbnb and Carnival – rallied today, which is not typical of a weakened economy that has also been affected by war.
Cramer recommended investors focus on their stocks’ earnings reports and whether they can perform well amid high interest rates and tensions in the Middle East.
“This gauntlet is a huge challenge. It requires either incredible conviction or a very oversold market or both to make the purchase worthwhile,” he said. “That could happen, I just don’t think we’re there, so I recommend something that’s pretty prosaic, if not downright boring: The perfect moment to sit on your hands.”
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