CNBC’s Jim Cramer warned investors on Tuesday about buying unprofitable stocks due to unjustified optimism about the stock market.
“I’m grateful for the hope as a way of thinking, but I’m not as confident as many buyers who are paying …. Here I see a level of enthusiasm that I find unreasonable. Should I go back? No. The “Mad Money” host, the “Mad Money” host, has become a favorite idea for all stocks, as many stocks miss numbers and other stocks hit us with negative predictions. I have. “
“Now we need to succumb to the Fed and inflation forces. [Fed Chair] Jay Powell will increase the likelihood that large institutional investors will buy stocks rather than sell them. For now, it dominates the stock market. “
Kramer commented that Federal Reserve Chairman Jerome Powell has taken positive action against inflation, including raising rates by half a basis point a week after starting rate hikes for the first time in more than three years. It will take place the day after you vow to take.
High-stock companies, even if they perform well, don’t always stay in volatile markets, Kramer said.
“There is a time when the economy will break out of the plunge and the stock market itself will become the Paria asset class, which is the source of funding for other asset classes, and the benefits of individual companies will not be reflected in their share. Price.”
Having advertised its strategy of investing in profitable companies for months, Cramer advised investors to refrain from buying non-investable stocks such as IPOs and SPAC setbacks.
“Whether Powell leads us to a soft landing or a hard landing, tons of these stocks aren’t very valuable,” he said.