Mad Money host Jim Cramer says the market has already decided that the Federal Reserve is “going to get tougher and create a recession no matter what.” Cramer also recently said that we are in a bull market, advising investors to buy on the dip.
Jim Cramer on the recession
CNBC’s Mad Money host Jim Cramer believes the market has already decided that the US economy will enter a recession. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
Cramer tweeted on Monday:
It doesn’t take too long for this market to turn negative. He has already digested Friday’s news again and decided that the Fed will tighten up and create a recession no matter what.
After a series of 75 basis point hikes, the Federal Reserve raised its benchmark interest rate by 25 basis points last week. Stocks rose on the Fed’s announcement. Additionally, new data released Friday by the Bureau of Labor Statistics showed that 517,000 new jobs were added in January and the unemployment rate fell from 3.5% to 3. .4%, reaching a level not seen since May 1969. However, Cramer noted that the S&P 500 fell slightly on Monday morning.
Many people do not expect the US to fall into a recession. Treasury Secretary Janet Yellen said Monday on ABC’s Good Morning America: “You don’t have a recession when you have 500,000 jobs and the lowest unemployment rate in 50 years.” In addition, global investment bank Goldman Sachs cut the probability of the US entering a recession in the next 12 months from 35% to 25% on Monday. “Continued strength in the labor market and early signs of improvement in business surveys suggest that the risk of a near-term downside has diminished markedly,” Goldman Sachs wrote.
“We are in a bull market”
Several people pointed out on Twitter that Cramer recently said that we are in a bull market. The Mad Money host explained on Jan. 31 that the market’s ability to gain on strong earnings reports suggests it has more room to run. Conversely, “the bear market goes the other way: Stocks open up, then get hit, and you feel humiliated. Good earnings mean nothing more than target price cuts,” Cramer opined, adding:
If we are in a bull market, and I think we are, you have to prepare… We have to prepare for the down days because in a bull market there are buying opportunities.
He concluded: “Even if it doesn’t reverse today, well, there’s always tomorrow, so don’t think about betting against it.”
Do you agree with Jim Cramer from Mad Money? Let us know in the comments section.
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