Investors should be careful not to make market decisions based on Russia-Ukraine peace talks, but they should also refrain from being too pessimistic, CNBC’s Jim Kramer said on Tuesday.
“I would like to be optimistic about the talks, but Russia’s previous promises of peace have made it difficult,” said the host.
Russia said on Tuesday it would reduce its attacks on the Ukrainian capital, Kyiv, and Chernihiv, as the two countries met in Istanbul for peace talks. It has broken similar promises in the past.
Kramer added that he still has allegations against Bearish analysts who were “intimidated.” [investors] Sold or kept near low [them] On the sidelines, “those who warned about the Federal Reserve’s impending interest rate hike will have a catastrophic impact and point in a partially reversed yield curve on Monday, which could predict a recession.”
Meanwhile, the Dow Jones Industrial Average rose 0.97% on Tuesday and the S&P 500 rose 1.23%. Nasdaq Composite rose 1.84%. The Dow and S&P 500 rose for a fourth straight session.
Referring to the recent market rally, Kramer said that the predictions of bearish analysts have been proved false. He also offered the S&P 500 short-range oscillator, one of his favorite market indicators, as a reliable basis for making investment decisions.
“I have a doctrinal view of this indicator: when it is very negative, you have to hold your nose and buy something because it means the market is a coil spring,” he said.
“That oscillator hit a very positive number today.… My discipline says it’s time to pull your horn,” he said. “We still want to buy some stocks after the oscillator is fixed, but we are mainly interested in oil and agricultural names, which have been affected by the news of the Russia-Ukraine peace talks,” he added.
Kramer added that investors should generally practice discipline while maintaining their portfolios.
“One of the most important factors in managing your own finances is the great cost. The average price you pay for your stock. I see most of the problems with investing often get a bad foundation – buying too much, which many people regularly sell too little. Leads to, ”he said. “I want to create the opposite result.”