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CNBC’s Jim Cramer said on Monday that he expects the selling on Wall Street to continue, suggesting investors wait to buy and profit from the pullback in stocks.
“Cash buying has been a great strategy for the past 15 months, but it is worthless in the face of a massive sell-off, which we have now,” said the host of “Mad Money”.
“I encourage you to sell before what is usually the weakest time of the year. I can’t turn positive until I find a real reason to change your mind. At the moment, we don’t. ‘don’t get it,’ he added. . “So please, if you want to be a buyer, find a reason to buy. Let the pain of the end of September unfold before you try to pull the trigger.”
Cramer’s comments on Monday came after the S&P 500 posted its worst performance since May 12, down 1.7%. The Dow Jones Industrial Average fell 614 points, or 1.8%, while the tech-rich Nasdaq fell 2.2%. At its lows on Monday, the Dow blue chip was down 971 points.
The top three averages are down more than 3% so far in September, a historically tough month for stocks, as Cramer has been warning for weeks.
There are several factors weighing on Wall Street beyond mere seasonality, Cramer said, highlighting concerns over struggling Chinese real estate developer Evergrande and Beijing’s response to its financial woes. Additional concerns for the market include the deadlock in Washington over debt ceiling negotiations, uncertainty over whether Covid cases in the United States are actually peaking, and the two-day political meeting of the Federal Reserve which begins Tuesday.
He also expressed concern about the number of new public listings leading to an oversupply of inventory, as well as what Cramer believes is a calming, at least temporarily, in the inventory of memes like GameStop.
“I honestly can’t go bullish in this market until you get bearish, until we find a justification as to why the sell is going to stop. At the moment we don’t have one. just not, ”Cramer said.
“So we just sit there and wait for something that might force us to buy a stock because we think it will go up,” he added. “At the moment, however, we have nothing to hang on to.… If anything, we have plenty of reasons to sell, including tonight’s report from Lennar where the big house builder has it. actually lacked advice. “
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