Jim Kramer told investors to resist the urge to sell everything

CNBC’s Jim Kramer on Wednesday warned investors against selling all their holdings, even as markets continue to deteriorate.

“No matter how scared you are, most people are not flexible enough to get out of this market and then come back at a good price. That’s why it’s a mistake to sell everything even after the market has become more difficult.” ‘Mad Money’ host said.

The Dow Jones Industrial Average fell 0.42% on Wednesday. The S&P 500 is down 0.97% while the Nasdaq Composite is down 2.22%.

Kramer highlighted a number of points to argue that investors should not feel pressured to empty their portfolios:

  • He says there is no serious systemic risk to the economy or the country by saving the possibility of nuclear war.
  • Even if the Federal Reserve dramatically raises interest rates, which could have a negative impact on people’s wealth, homes and other assets, “remember that most people don’t own any of it,” Kramer said.
  • The host added that even if an investor sells everything and plans to re-enter the market later, setting the right time will be incredibly difficult.

Kramer added that there is currently a bull market and a bear market. As the Fed seeks to reduce inflation, consumer stocks of packaged products and medicines are performing better than technology stocks, he said.

However, he advised investors not to panic. Kramer on Tuesday asked investors to sell some of their stocks, but not all.

“If people come on TV and tell you to sell everything.… You have to be really careful,” Kramer said. “Even if they scare you with your wit, you should tie yourself to the mast nine times out of ten. Of course stay,” he added.

Leave a Reply

Your email address will not be published.