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CNBC’s Jim Cramer said on Wednesday that he expects the uncertainty surrounding the coronavirus pandemic to continue to cloud the investment landscape, stressing the need to bet on companies with proven management teams at the closed off.
“While we’re now in phase four, we have no idea what phase five will look like, and you’re kidding yourself if you think you can make meaningful predictions,” said the host of “Mad Money,” claiming the previous one’s expectations about how long it would take to develop vaccines, for example, have turned out to be wrong.
At this point in the pandemic, Cramer said investors can’t try to predict the future simply based on metrics like monetary policy, the savings rate and bond yields. These metrics were reliable in a pre-Covid world, allowing investors to make educated guesses about which sectors might stand out in the short term, Cramer said.
“It’s all gone now” because of how the Covid crisis has become “incredibly” unpredictable, he said.
“That’s why you have to find great companies with CEOs who can work their way through any of these phases. They will be the winners no matter how it all turns out,” said To screw up.
The current increase in coronavirus cases in the United States, hospitalizations and deaths, linked in large part to the highly transmissible delta variant, is the latest complication facing Wall Street, Cramer said.
“We’re still trying to figure out what the latest outbreak means, but I think it might sound more like phase one – where we’re stuck at home, so home sales are skyrocketing, offices are kind of put down. aside, and there are tons of test requests, ”Cramer said.
“In this environment you have to fall back on the selection of individual stocks. The infrastructure package, the previous stimulus helped you come up with ideas,” he added, “but what matters is that you can’t really get much out of the aggregate [economic] The data. … It’s always backward. “
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