CNBC’s Jim Cramer proves that last week’s stock market recovery should always pay attention to bounces, even if everything seems hopeless.
“The most important lesson last week was that we don’t want to be too negative, because if the market is oversold, we don’t need that good news to create an explosive rebound,” Kramer said.
“When the whole market growls, it’s important to realize that not all have the same kind of sustainability. Many crushed groups have come back thanks to the short covers … but others. Some groups are much more durable, “he added.
The host of “Mad Money” said he believed that “consumer discretionary stocks” like companies in the travel industry such as Macy’s, Delta Air Lines and American Express would be the winners.
Kramer’s comment follows last week’s monster rally as investors digested news of the Russian-Ukrainian war, a quarter percentage increase in the Federal Reserve, and the outbreak of Covid in Russia and China. It has been issued. All major averages have finished the highest week since Friday, November 2020. S & P and 500 and Nasdaq soared for four consecutive days, with the Dow Jones Industrial Average rising for five days.
The market said on Monday that Fed Chair Jerome Powell could raise rates more aggressively for the rest of the year if needed to combat rising inflation. I was upset.
Investors should carefully choose “sustainable” stocks, Kramer said, but his overall position of holding only stocks of money-making companies has not changed.
“Last week gave you a great opportunity to relocate, but it didn’t change my basic treatise … to profitable companies that provide real products or services, especially shareholders. Stick to a company that returns capital, “he said.
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