Important points
CNBC’s Jim Cramer said Tuesday that wild swings in the stock and oil markets show why retail investors need to exercise restraint during the Iran war. “If you’re buying and selling stocks in the moment, you’re not sitting idle, you’re going to go crazy. You’re going to make mistakes, and you’re going to end up looking like a fool,” Kramer said on “Mad Money.” “There’s pure madness behind it,” he added. “It’s very difficult to make money in this environment.” The S&P 500 ended choppy trading Tuesday slightly lower, and the Dow Jones Industrial Average also edged lower. The Nasdaq ended the day almost flat. All three major indexes spent time on Tuesday with solid gains and losses, obscuring everything that happened during the trading day at closing price levels. This comes after a rocky session on Monday, when the Dow Jones Industrial Average erased a more than 800-point decline and fell more than 200 points after President Donald Trump said the Iran war could end soon. But by the time Tuesday’s opening bell rang, investors had to contend with rhetoric from Washington, including Defense Secretary Pete Hegseth’s early morning news conference, which sounded much harsher than President Trump’s message Monday afternoon, Cramer argued. Oil markets were also volatile on Tuesday, falling as traders expected the market to be supplied through a coordinated release of strategic oil reserves from countries around the world. But losses gained momentum late in the session after Energy Secretary Chris Wright posted on X that the U.S. Navy had successfully escorted a tanker through the Strait of Hormuz, only for the White House to retract that claim. Oil prices are likely to ease significantly from their trading lows. “When things are this uncertain, you can just keep quiet,” Kramer said, adding that it’s easier than worrying about social media posts. With mixed signals coming in, Cramer said everyday investors have a clear advantage over professional traders who have to answer to concerned clients. “For hedge fund managers, these kinds of sessions are harmful because on days like today, hedge fund managers feel like they have to take action,” Cramer said. “If you’re in charge of your own money, there’s an easy way to survive today’s craziness: do nothing.” Subscribe to CNBC Investing Club today to follow Jim Cramer’s every move in the markets. Questions about Cramer’s disclaimer? Call Cramer: 1-800-743-CNBC Want a deeper look into Cramer’s world? Punch him! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Have questions, comments, or suggestions about the Mad Money website? madcap@cnbc.com
