- CNBC's Jim Cramer on Wednesday praised the results of CNBC's latest Delivering Alpha Stocks survey, in which a majority of investors predicted an imminent decline.
- He called on investors to welcome the decline and raise cash to buy quality stocks at lower prices.
CNBC's Jim Cramer on Wednesday praised the results of CNBC's latest Delivering Alpha Stocks survey, in which a majority of investors predict the market is overextended and a pullback is imminent. He called on investors to welcome the decline and raise cash to buy quality stocks at lower prices.
“I think people are right to expect a backlash here,” Kramer said. “But that's not a reason to head for the mountains. Instead, you want to raise a little cash, watch the market expand, and buy your favorite tech stocks when the market dips.”
For Kramer, such setbacks may be difficult to predict, but they are bound to happen. Using a gardening analogy, he said that wave reversals are like rain: they are inevitable, but necessary for the growth of plants and portfolios.
While it's wise to raise cash to protect against a backlash, Kramer also suggested weathering the disruption. If investors are always trying to avoid the next pullback, they could miss out on the next rally, he said.
In particular, Kramer said there may be an opportunity to buy Nvidia, one of his favorite stocks. He talked about how he was at bat for the tech giant for many years, even when the company's stock suffered huge losses a few years ago. While some on Wall Street may be tired of artificial intelligence, Cramer asserted that the future is “powered by Nvidia.”
“If you don't already own Nvidia, you know what? It's about to be sold,” he said. “If you already have one, stick with it, because it's very difficult to replace it and then get it back to the right level.”
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