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CNBC’s Jim Cramer said on Wednesday he saw reasons for investors to be slightly more positive about their holdings of stocks after a recent rough patch for Wall Street.
“After weeks of carnage, where every rally turned out to be a trap, people just don’t know what to do, and when they are confused of course they sell,” said the host of “Mad Money”. , trying to explain why stocks opened Wednesday’s session lower before finally reversing. The three major US stock indexes ended up closing in positive territory.
“At this point, however, you need to think about why you own the stock in the first place. Perhaps you’ve sold to [the market open]. I hope not. If the thesis is still intact and nothing has changed for the worse, then it’s time to have some conviction, “Cramer said.” I think when the market is down like this morning you do some purchases. “
Shares changed direction on Wednesday after it was reported that Senate Minority Leader Mitch McConnell told fellow Republicans in a closed meeting that he planned to offer an extension to the cap short-term debt.
Cramer said he believed sentiment was also helped by comments from Energy Secretary Jennifer Granholm, who the Financial Times said the Biden administration was considering relying on the strategic reserve. of the country’s oil to help control gas prices.
“No wonder the averages have returned to normal,” Cramer said, explaining that he believes “man-made problems” in Washington have recently weighed on the markets. “Although man-made problems are very stupid and frustrating, they are also easy to solve,” he said.
“Here’s how I see this moment: We’re about to end the most seasonal part of the year, Covid is on the mend, and the areas that have been hit hardest by the delta variant now have the best. business growth in the country, “added Cramer.” These are reasons to buy, not to sell even though we know that historically the next 10 days will look a lot more like this morning than this afternoon. “
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