On Wednesday, CNBC’s Jim Cramer warned investors against selling all their holdings, even as markets continue to tumble.
“No matter how scared you are, most people aren’t nimble enough to get out of this market and get back into it at a good price. That’s why it’s a mistake to sell everything even though the market has become harder,” the “Mad Money” host said.
The Dow Jones Industrial Average slipped 0.42% on Wednesday. The S&P 500 fell 0.97% while the Nasdaq Composite fell 2.22%.
Cramer made several points to argue that investors shouldn’t feel pressured to empty their portfolios:
- There is no “serious systemic risk to the economy or the country except the possibility of nuclear war”, he said.
- Even if the Federal Reserve dramatically raises interest rates, which could negatively impact people’s assets, homes and other properties, “remember that most people don’t own any of those,” he said. To screw up.
- The host also noted that even if an investor plans to sell everything and re-enter the market later, it will be incredibly difficult to find the right timing.
Cramer added that there is currently a bull market and a bear market. As the Fed tries to contain inflation, consumer packaged goods and drug stocks are doing well, unlike tech stocks, he said.
Nevertheless, he advised investors not to panic. Cramer told investors on Tuesday to sell some of their stocks, but not all of them.
“If people come on TV and tell you to sell everything. … You better be very careful,” Cramer said. “Even if they blow your mind, nine times out of ten you should tie yourself to the mast. Stay the course,” he added.