Business

Jim Cramer says stubborn investors are taking the ‘wrong approach’ to the market

CNBC’s Jim Cramer on Tuesday warned investors not to miss a chance to make money.

“The level of negativity towards stocks right now is the highest in years… There is a new class of investors who are buying stocks not on the basis of fundamentals, but on the basis of anger, as if they are trying to win some kind of argument. This is the wrong approach,” said the host of “Mad Money”.

“Rethinking is a virtue in this business,” he added.

Stocks rose on Tuesday as the S&P 500, Nasdaq Composite and Dow Jones Industrial Average closed above their 50-day moving averages for the first time since April.

Investors believe the market could bottom after a deep slump this year driven by rising inflation, a series of interest rate hikes by the Federal Reserve, the war between Russia and Ukraine and Covid lockdowns in China.

Cramer reiterated his reminder earlier this month not to be too afraid of a market downturn, adding that pessimism has gone nowhere in past financial and economic crises.

“Looking back, my biggest mistake in each case was that I wasn’t optimistic enough,” he said.


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