CNBC’s Jim Cramer reviewed Tuesday’s stock market action and advised investors to stay in the market despite the geopolitical environment. Otherwise, he said, they might miss out on winning sessions.
“People just can’t seem to process the most important three words in the investing lexicon: ‘stay the course.’ Nobody wants to stand pat when they think they can get out and then jump right back in. That’s incredibly difficult.”
Tuesday ‘s session saw the S&P 500 and the Nasdaq Composite close at record highs as investors celebrated a weaker-than-expected inflation report that could allow the Federal Reserve to cut interest rates.
According to Cramer, some investors didn’t profit from Tuesday’s market moves because they were too pessimistic about certain problems. He said issues that cause investors to sell usually aren’t remedied until after stocks have already rallied, so it’s hard to re-enter the market.
Cramer looked back at recent events that concerned some on Wall Street, including the promise of sweeping tariffs and President Donald Trump’s firing of the head of the Bureau of Labor Statistics hours after the agency shared a weak employment report.
Cramer said he doesn’t necessarily agree with the White House’s decisions. However, he suggested that a move by Trump that seems “outrageous” to some is not a reason to sell stocks — especially after the gains banked on Tuesday. He said he thinks most of Trump’s actions can be undone if they become problematic, adding that the CEOs of Nvidia and Apple have managed to make make deals with president.
“More important, I just can’t relate most of this stuff to the companies themselves and the profits they make. They’re making tons of money, more than ever,” he said. “They’re giving you a tremendous return. They’ve figured out how to change their supply chains, how to deal with a mercurial president — thank you, Jensen Huang and Tim Cook — and they do what’s necessary to help you make money.”
