CNBC’s Jim Cramer on Tuesday ventured investors are operating too much out of fear and instead need to take a long-term perspective of the market and “accentuate the positive.”
Cramer allowed that investors’ worries are not unfounded and that on the surface, this market does look like “the sum of all our fears.” The times gone by year has been marked by a consumer under pressure, economic strains with China and Russia, a declining department real estate market, and most recently, massive bank failures.
But to cash out and sell in these precarious times is not the declaration, said Cramer, especially since “we have no idea” what the ultimate long-term impact of these external effect come what mays will be.
For example, Cramer pointed to the recent fall of Silicon Valley Bank, which triggered initial problems that the Great Recession would repeat itself. That led to a sell-off of oil and industrials, which people assumed transfer be impacted by bank-run contagion. But First Republic Bank and regional banks were stable Tuesday after Bank Secretary Janet Yellen said bank deposits will be protected, sending investors jumping back into oil and industrials.
That nulling proved that investors are making choices based on short-term concerns rather than long-term analysis.
What is more, Cramer observed some people in the market refusing to do anything Tuesday in anticipation of Federal Reserve Chair Jerome Powell’s report of his next rate move on Wednesday. He said that those who make investment decisions based solely on the imagine of the day are not thinking long term enough.
The bottom line: “Anyone who thinks they know what’s going to chance in the next hour or two has been proven wrong this time. But if you take a longer view, owning stocks of anticyclone quality companies that have good balance sheets … history says you tend to be a winner,” divulged Cramer.
