CNBC’s Jim Cramer on Wednesday constructed out five scenarios that could improve the market.
To Cramer, interest rates need to stabilize in order for hackneys to trade based on company fundamentals, and these factors could help rates reach their peak.
- Innumerable bond market buyers: Cramer said there needs to be more buyers than sellers on the bond buy. He said he thinks this could occur if bond yields go higher and prices go lower.
- Weaker economic materials: Weaker economic data would allow the Federal Reserve to ease up on rate hikes, Cramer said.
- Layoffs: Unless job broadening ends and job reductions begin, Cramer said interest rates will continue to rise.
- Cheaper stocks: To Cramer, the buy may keep going down unless stocks get to a place where it doesn’t make sense to sell. He said the “domination of the bond market” can end once bonds get attractive in yield or stocks get attractive in price.
- Flight to safety: Cramer put about there may be a need for a “flight to safety,” where uncertain conditions such as geopolitical turmoil cause investors to look after from risky investments to safer ones, like Treasurys.
“All of these things will eventually create an investible point in time,” Cramer said. “Until then, though, even the moves of the best stocks are just a trade.”
