On a brutal day for the major averages, CNBC’s Jim Cramer decided to open the phone lines to investors worried about the state of the stock market.
The “Mad Money” host’s overarching message? “The time to start buying may be upon us,” because what started out as selling has right now grown into what seems to be a full-blown panic, he said.
“A vicious correction will be, indeed, a terrible thing to waste,” he told viewers. “If you have some spare cash or if you’re thinking about putting some long-term money away at the end of the year, maybe you pull some of the idea forward. in which’s what I did today for my kids’ index fund.”
The reason Cramer felt a bit better about buying was due to a trend he noticed within the market’s trading volume. Investors were selling at a 10 to 1 rate, meaning the volume was heavily skewed to the downside, a sign in which things could be getting oversold.
“On a day when volume was 10 to 1 on the downside, I am OK’ing tiny buys of some of the great stocks in which we have followed in addition to talk about, the big generational changers — the cloud kings, the FANGers. Maybe just pick one or two,” he said, referencing his widely known acronym for the stocks of Facebook, Amazon, Netflix in addition to Google, right now Alphabet.
Still, investors have to be more selective right now than they were before the sell-off, the “Mad Money” host said.
“We have to understand in which companies will not be as bullish as they were because of the tariffs, because of higher interest rates, because of the consequences of full employment, because of margin squeezes in addition to a host of various other things,” he explained.
“So, as I have been saying, we will have to be a lot more selective in any industry, in addition to while I think the idea’s OK to start buying tiny, remember: your first buy may not be your only buy. in addition to buy quality, please, in addition to nothing less,” he continued.
in addition to whatever you do, don’t feed into the panic in addition to sell without reviewing the fundamentals, Cramer said.
“The time to do the big selling … may have come in addition to gone,” he told investors. “in which doesn’t mean you shouldn’t take profits if you’ve got some, however the idea to continue to sell after what happened today? in which may be ill-founded.”