CNBC's Jim Cramer said Thursday that the market is up so much that it may be time to ring the registers.
One of Kramer's core beliefs is to never be greedy and take advantage when you can. He said a Federal Reserve rate cut may not be as imminent as some on Wall Street expect, and that some stocks with exposure to artificial intelligence could shine. He suggested it may be time to take some stocks out of the trade, in part because they are starting to lose money.
“If you haven’t taken something off the table yet, please,” he said. “That's disciplined behavior.”
Mr. Kramer reflected on the CNBC Investment Club's decision to sell all of the charitable trust's Caterpillar stock. DuPont pre-announced weaker-than-expected earnings on Wednesday, which could be a harbinger of bad news from peer Caterpillar, Cramer said. The trust bought Caterpillar stock in part because it assumed the Fed would cut interest rates several times, which usually bodes well for industry. But there are signs that the fight against inflation is not over, with gross domestic product (a measure of all goods and services produced) showing stronger-than-expected economic growth at the end of 2023.
Cramer said the drop in PayPal and ServiceNow's stock price could signal losses for other stocks that have been supported by AI efforts. Cramer expected the former's stock to soar after CEO Alex Criss announced new AI products on Thursday. Instead, PayPal fell 3.67% by the close.
“Every time you have a precious moment like this, it's time to do a gut check,” he said. “That means some trimming is required because the profits don’t count until you ring the register.”
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Disclaimer CNBC Investing Club Charitable Trust owns shares of DuPont.
