CNBC’s Jim Cramer on Tuesday urged buyers to not overreact to Wall Street’s current declines, suggesting the weak spot was overdue and may ultimately flip into a chance to purchase high quality shares at reductions.
“After a day like today, all you can do is patiently hunker down and wait for lower prices,” Cramer stated on “Mad Money.” “Somehow, I think we’ll get them.”
The S&P 500 and Dow Jones Industrial Average recorded their worst sessions in nearly a month Tuesday, falling 0.72% and 1%, respectively. It additionally marked their second consecutive day within the purple. The tech-heavy Nasdaq Composite dropped 0.95%, after rising barely Monday to kick off the second quarter.
Additional declines could also be on the horizon, as buyers grapple with rising oil prices and larger bond yields tied to stronger recent economic data, Cramer stated. The market has marched larger since late October, and he stated ultimately a pullback was so as. “What really matters is that we haven’t had a sell-off in so long that we’ve forgotten to handle them,” Cramer stated.
In assessing the elements behind the declines this week, Cramer indicated he is not overly involved with the implications for shares over the long run.
“Yes, we’ve got higher rates, but the impact on the economy is not profound,” Cramer stated. “Meanwhile, the impact on the market is what you’d usually expect: People pay less for stocks when rates go up. We’ve just kind of forgotten that happens.”
