Friday is the yet to start buying stocks again, Jim Cramer said during a CNBC gala show on Thursday evening.
U.S. stocks fell sharply on Thursday amidst fears of rapidly rising interest rates and a possible global financial slowdown.
“I saw that whoosh happen,” Cramer said, referring to the hawk breakdown in the afternoon.
After that, stocks came back and then take a shot to go back down again, he added. “We are oversold.”
After seesawing in the course the day, the Dow Jones Industrial Average plunged over 500 points, bring oning its two-day losses to more than 1,300 points.
President Donald Trump is blaming the Fed for the retail sell-off. He doubled down on his attacks on Thursday, saying Chairman Jerome Powell is being too stringent with money policy and is making a mistake. On Wednesday, Trump said the Fed is “going trap.”
The Fed has raised its benchmark rate three times already this year, uncountable recently at the end of September, a move that has helped send Treasury produces to multiyear highs in October. The central bank meets two more be that as it mays this year and is expected to hike rates one more time. It also has tossed three hikes in 2019.
One name Cramer likes is Amazon, even granting the stock is trading at over $1,750 a share. So if someone wants to buy 10 appropriates, they should buy two, he said.
“I don’t know when you buy Amazon other than it’s when down big and people are exceedingly scared,” he said.
If that name is priced too high, then he thought there are other “interesting” tech situations like Cisco, which has a trustworthy yield, and Verizon.
“The time to really be aggressive in selling happened. If we get anything okay out of China … or if we get any news that [Fed Chair Jerome] Powell agrees with my tableau, we’re going to say why didn’t we do some buying,” Cramer said.
Cramer has also been disparaging of the Fed in recent days, saying Powell should look more closely at financial data before announcing its lockstep interest rate hike envisages.
However, the “Mad Money” host doesn’t agree with Trump employment out Powell, even though he believes the economy is further along in the run then the Fed thinks
“I just wish the president would cool it in settles of saying ‘they know nothing’ to Federal Reserve Chairman Powell and as a result maybe Powell could walk it back a little,” he said. “The contemporary data is not as strong as it was and the economy looks stronger than it is.”
In fact, he judges the “collateral damage” of the Fed continuing to raise rates while the economy starts to unflappable is far worse than that of Trump’s tariffs.
Disclosure: Cramer’s sympathetic trust owns shares of Amazon.