CNBC’s Jim Cramer said Tuesday that the unrelenting negative atmosphere surrounding the market is creating an opportunity for investors willing to ignore the headlines and endure a little more near-term volatility.
His comments come as rising U.S. Treasury yields, persistent inflation and high oil prices weigh on stock prices. All three major indexes ended the day in the red. of 30 year government bond yield It reached 5.33%, the highest level in about 20 years. brent Oil prices have climbed above $90 per barrel as negotiations between the US and Iran remain stalled. But Cramer argued that these concerns are overshadowing signs of economic resilience.
“I know ‘not bad’ isn’t much of a compliment, but you can certainly get a better price than what you see if you have a good background,” the “Mad Money” host said. “Maybe we should think so. That’s the opportunity, and even if this isn’t the exact rock bottom, the costs seem manageable.”
“What I’m trying to say is that it’s not all bad and it can be better,” he said.
Kramer cited oil and bonds as two areas where concerns may be overreaching. Rising oil prices are adding to inflationary pressures, but he doesn’t expect Brent crude to rise much above $100 as additional supplies come online. Rising bond yields could also eventually attract buyers, he said, as investors can lock in increasingly attractive bond yields. Bond yields are inversely proportional to price, so all else being equal, an increase in buyers will push yields down.
He also sees opportunities in technology. With a record number of short bets Nasdaq 100Mr. Kramer said he wants to take advantage of this weakness and gradually buy into battered data center stocks. he emphasized micronwas recently purchased by Cramer’s Charitable Trust, a portfolio managed by CNBC’s investment club, amid strong demand for memory used in AI infrastructure.
The resilience of consumer spending gives Kramer another reason not to get too bearish. airbnb Clubs reported strong travel demand, but home depot The company had what Kramer called its “best quarter in five years.”
“All I can say is, at the end of the day, we are a service economy,” Kramer said. “If the service is going well, there’s no need to be too negative.”
Kramer isn’t claiming that the market’s problems have gone away or pointing to a precise bottom. His argument is that despite parts of the economy continuing to perform well, widespread pessimism is pushing prices down, and could create a more attractive entry point for investors if investor concerns are not fully resolved.
