- CNBC’s Jim Cramer suggests waiting for the next interest rate hike before buying stocks.
- He believes the resulting sell-off will make stocks cheaper and provide a better buying opportunity.
In a recent CNBC segment, Jim Cramer advised investors to hold off on buying stocks until interest rates rise, triggering a sell-off and making stocks more affordable. According to Cramer, “For now, your best bet is to wait for the next move up in interest rates, which will trigger the next sell-off in stocks — that’s when you buy.” He also emphasized the importance of thinking long-term and staying the course.
Cramer believes there is a disconnect between the true value of certain companies and the current trading prices of their stocks. He highlighted companies such as Coca-Cola, 3M, RTX, General Electric, and Verizon, which seemed to be underperforming but experienced rallies after reporting earnings. According to Cramer, these gains were influenced by low investor expectations.
He cautioned against betting on a beat and raise quarter, which relies on the performance of S&P 500 futures. Instead, he suggested waiting for the averages to decline again before making any purchases. Cramer concluded, “I’d argue that it’s almost better to simply wait until the averages are down again before you buy given the nature of this market. I bet there’ll be another opportunity.”
