Jim Cramer says we’re in a bull market so buy the dip
CNBC’s Jim Cramer told investors on Tuesday that the market is in bullish mode, so the decline represents an opportunity to buy dips.
“If we are in a bull market, which I think we are, you need to prepare,” he said, adding: “We need to prepare for down days now because in a bull market they are buying opportunities.”
Stocks rose on Tuesday, with the S&P 500 hitting its best performance in January since 2019, supported by strong corporate earnings and softer-than-expected inflation data. The Nasdaq Composite posted its best January since 2001.
Cramer said the market’s ability to grow on strong earnings reports suggests it has more room to grow.
“The bear market goes in the opposite direction – stocks open up, then fall, and you feel humiliated. Good earnings don’t mean anything other than lowering the target price,” he said.
The rise in the market comes the day after the stock fell earlier in the week. Cramer said Tuesday’s reversal shows high-quality names will eventually rebound in the current market.
“Even if it doesn’t change today, well, there is always tomorrow, so don’t think about betting against it,” he said.