Kramer offers to make some money after Tuesday’s downturn

CNBC’s Jim Kramer has encouraged long-term investors to put some money into the broader market after Wall Street plummeted on Tuesday.

Specifically, the Mad Money host suggested looking for an index fund that tracks the S&P 500, which he has long argued should be the bulk of portfolios.

“Given that keeping some money in the S&P 500 index fund for retirement is a good idea, I bless you to invest some capital tomorrow morning,” Kramer said after the S&P 500 fell 1.9% and the Dow The Jones Industrial Average fell 1.86%. high-tech Nasdaq lost 1.6%.

“It is too early to buy at the moment, but too late to sell,” added Kramer.

Key averages for US stocks fell on Tuesday as investors weighed in on the latest news on the recently discovered variant of the Covid omicron, as well as comments from Federal Reserve Chairman Jerome Powell about the possible acceleration of the central bank’s asset purchases cutback.

Kramer suggested that investors on Monday wait for confirmation of the first use of the omicron in the US before making any purchases. However, he said his roadmap has changed slightly given how widespread Tuesday’s sales were.

“At one point today we had a ratio of nine to one per purchase,” Kramer said. “It’s a sacred relationship when the late Mark Haynes, legendary CNBC host and a good friend of mine, always told you what you should have bought.”

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Kramer stressed that investors should not “go too deep into this market,” that is, not go out of their way to buy individual stocks. Instead, he said he advises long-term investors to put some of their cash into work.

“The rest needs to be put in place in stages after we start dealing with omicron cases here in America if something really goes wrong,” he said. “I’d say it’s a quarter of your money. [Wednesday]one quarter of a day when the omicron reaches our shores, and then the next half over the next few days. I think this is the mindset for people with IRAs, 401 (k) s, this is your chance if you haven’t already. “

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