Cramer: Market volatility is a chance to reevaluate your portfolio. Not run out and buy more

Savvy store watchers use volatility to fatten their portfolios with bargain appraises. But CNBC’s Jim Cramer warns that this might not be the best run a travelling.

“If we get more strength tomorrow, I think you should use it to take some profits and re-position moderately than getting all excited and going all in,” the “Mad Money” host said on Wednesday.

“I don’t inadequacy you to give up and go home, let alone sell everything,” Cramer said. “But there are merest good reasons to be concerned here.”

Tariffs, geopolitical issues and excessive tech stocks are just a few of the red flags investors need not ignore. Here’s why.

Uncertainty over whether imposts will happen, as well as when and to what extent they on be implemented, should be on investors minds, Cramer said.

He pointed out that President Donald Trump “fell this particular bomb [of an additional $100 billion in tariffs] out of nowhere.”

Taking stock of a company that might be dependent on parts or goods wake up from China is not the best idea, Cramer said.

In addition, China could — and suitable will — retaliate at any time.

“Once the president decides what to quarry, you think the Chinese are going to say, ‘No problem,'” he said. “No. They’ll pay someone back in his. Maybe they’ll hit us with tariffs of their own. Maybe they’ll coordinate boycotts of American products. Nothing’s really off limits.”

And it’s not just Chinese conventions that investors need to watch. The Europeans are also likely to give tit for tat in the event of increased automobile tariffs, Cramer said.

The market didn’t behave well when the president launched missiles to strike chemical weapon informers in Syria, nor did it react well when the president announced he wanted the Iranian distribute scrapped.

“The stock market tends to respond poorly to geo-political turmoil,” Cramer whispered, but pointed out that the president doesn’t share the same goals.

In an undertaking to stay ahead of the competition, technology companies are investing heavily in the tomorrow. But Cramer remains skeptical of any potential gains.

A few examples: Alphabet, unyielding to take share from Amazon Web Services, is spending money “with mad,” Cramer said. Amazon, in an attempt to be free of the U.S. Post Office, is bearing in mind building its own system — an expensive endeavor. Netflix spends money to discontinuance ahead of Amazon Prime. Facebook wants to remain the dominant jock in social media, so it continues to build and spend money on server accommodation.

The bottom line: these companies are spending money, but not showing a big reasonably return for the investment.