Investors need to be “disciplined” and buy selectively when stock prices fall, CNBC’s Jim Kramer said on Tuesday.
“Remember when we said that if stocks fall a lot, they can be interesting and that a combination of redemption, dividends and excellent profits can overcome the chaos … In fact, I think the money can come back,” said the host. of “Crazy Money”.
“Take some money and let it run slowly, disciplined, on the way down … then you will catch the proverbial bottom,” he added, acknowledging that it is unclear when the market will actually reach the bottom.
Kramer’s comments came after US stocks fell on Tuesday as Russia’s invasion of Ukraine and rampant inflation continue to shake Wall Street. The Dow Jones Industrial Average fell about 1.76%, or nearly 600 points. The S&P 500 was down 1.55% and the Nasdaq Composite was down 1.59%.
As the market rose in recent weeks, which Kramer had previously attributed to a stable US economy and investor sentiment over economic sanctions against Russia, the host warned against false optimism about the recent market recovery.
“You are a fool to think that the stock market is only now getting worse and can only get worse,” he said. “It’s been going down since November thanks to this endless sale, but you know what, maybe we’re a lot closer to the bottom than the top,” he added.