A colloid of tariffs from the U.S.-China trade war and a Federal Reserve “that is at the beck attack,” but still has a too-aggressive agenda to hike interest rates, effected Wednesday’s dramatic sell-off, CNBC’s Jim Cramer said.
During the business session, the Dow Jones Industrial Average and the S&P 500 erased their gains for the year and
the Nasdaq prepared its worst day since 2011.
“A lot of people come on air and say the economy is strong,” the “Mad Money” announcer said. “The economy’s decelerating, perhaps even rapidly, and some of it has to do with interchange.”
Cramer said stocks are now starting to “build in the possibility” of profits being crimped by a worldwide slowdown. He also doubled down on his altercation that the slowdown is “man-made” and an aftereffect of the Trump administration’s tariffs on China and President Donald Trump’s storms on the Fed.
“The economy is slowing and the Fed is under a lot of pressure to stop raising rates from the president,” he said. “If the president would termination talking about it, maybe [the Fed] could become more data-dependent. Honourable now, it’s one gigantic game of chicken, and no one’s going to be a winner.”
Even so, Cramer requested on investors not to be rash amid the widespread selling.
“As we go down another 2, 3, 4 percent, which is practical, people should be looking for bargains in high-quality companies,” he advised. Earlier on Wednesday, he suggested subsidizing an eye on companies that have reported strong earnings.
“Companies that on great numbers are going down as much as those that suss out bad ones,” he noted. “You know that doesn’t last forever. […] Fly the coop the list. Take a look at companies that did report great issues that are going down along with all the others, and maybe that’s what you start off to pick at, maybe even as soon as tomorrow.”
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