Investors should take to heart Federal Reserve Governor Lell Brainard’s comments on inflation policy and sell some holdings, CNBC’s Jim Kramer said on Tuesday.
“It’s not a sale, call everything.… In fact, healthcare stocks and oils are still very attractive here, and if they go down, I’ll put more money into it. -A lot of immunity from directed recession. I’m just saying I’m becoming more conservative
“If you own something you don’t like, it’s a good time to sell. We’re far above. I think you’re going to get a good price in the past. When the Fed’s biggest pigeon turns into a bird of prey, you You will notice better, “he added.
Kramer’s comments came on Tuesday after Brainard took a stand in favor of lower interest rates to take aggressive action against inflation from its normal position. Brainard said in a written statement for the Minneapolis Fed negotiations that policy measures could soon include tightening the balance sheet and indicated that interest rate hikes this year could exceed the 0.25 percentage point increase implemented in March.
Investors’ fears of an economic downturn on Tuesday have weighed on the market following Brainard’s remarks. The Nasdaq Composite fell 2.26% and the Dow Jones Industrial Average fell 0.8%. S&P 500 down 1.26%.
All three market indices rose on Monday, led by tech-heavy Nasdaq. Kramer said market movements this week are a sign that investors are confused.
“I don’t like it when you have a market where, on Mondays, merchants buy all semis and throw away healthcare, and then on Tuesdays,” they said, in reverse, Kramer said. “It’s a classic sign that no one knows what to do,” he added.
“I will not allow myself to be oblivious to this awakening call.… I am pulling my horns and selling with agility,” he said.