Recently, Jerome Powell, the chairman of the United States Federal Reserve, made an announcement about taking aggressive measures to prevent excessive inflation from negatively impacting the American economy. One of these measures includes increasing interest rates, which has led to significant fluctuations in the stock market, causing some stocks to decline while others have surged.
Instead of speculating on these unstable stocks, Jim Cramer, the host of CNBC’s Mad Money, has recommended that investors opt for a cautious approach until the market stabilizes. Cramer expressed his concerns about the current market sentiment, stating, “While I appreciate optimism, I am not as optimistic as many buyers who are willing to pay high prices. There is a level of excitement in the market that, in my opinion, is unwarranted. We should not revert to a mindset where we favor all stocks, as many of them will underperform, and some may even provide negative outlooks,”
Jim Cramer tells investors to ‘bow down to the Fed’ and beware of false market optimism https://t.co/jTJwxstbUR
— CNBC (@CNBC) March 22, 2022
“At present, we should acknowledge the authority of the Federal Reserve and the impact of inflation. Any actions that help control inflation, such as firm statements from Fed Chair Jay Powell, are likely to encourage major institutional investors to buy stocks rather than sell them. Currently, this is the determining factor in the stock market,” Cramer emphasized.
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