CNBC’s Jim Cramer on Tuesday stated that while there are 3 financial and geopolitical concerns presently roiling the marketplace, just one requires to deal with for the marketplace to bottom.
“There are 3 offenders behind our decrease: The [Federal Reserve], Russia andChina Any among them might put an end to this crisis,” the “Mad Money” host stated.
Cramer’s remark described the Fed’s strategy to start a number of rate of interest walkings this year and tighten its balance sheet to manage skyrocketing inflation, the Russia-Ukraine war and China’s Covid- associated lockdowns.
“We’ve been worrying about them for weeks or months at this point, and I think we need to start preparing ourselves for the possibility that something may actually go right. That’s been the usual trajectory of these horrifying sell-offs,” he included.
The S&P 500 fell 2.8% on Tuesday while the Nasdaq Composite toppled 3.95%. The Dow Jones Industrial Average dropped 2.4%.
“I never want to be sanguine about a sell-off, especially this one. The damage is severe, especially in the technology stocks, and there are real reasons for the fear. But … you have no idea whether we could have a snapback,” Cramer stated.
He included that even if all 3 of the concerns he highlighted do not deal with quickly, there are advantages to being prepared if even a couple of of the issues settle.
“If one of them gets solved, we might find a bottom worth testing a month from now. … If two get solved, we’re going to get a massive rally,” he stated.
