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Kramer says it’s too early to buy aggressively after a tough start in 2022

CNBC’s Jim Kramer said Thursday that he believes the stock market has yet to hit true “investment bottom” as Wall Street approaches a volatile 2022.

“This does not mean that you cannot selectively select the stocks that fall,” said the Mad Money presenter. “We’re going to start doing this for the charitable foundation if we see any purchases. We haven’t done that yet. It is too early to show aggression. “

Kramer said his Thursday call was related to a 10-point checklist analysis he developed over his nearly 40-year Wall Street career. It contains various events and sentiment indicators that it needs to identify before it is ready to announce an investment bottom.

“From my checklist, it’s too early to say what is worth buying in weakness. I think we need to experience even more pain before we hit the big bottom that everyone is waiting for, ”said Kramer.

For example, Kramer said he has yet to see “the level of negativity that made you feel stomach ache,” which could mean the mood change is okay. Tech stocks are the only slice of the market that “really fell,” Kramer said. According to him, other regions are actually overbought.

Another sign that the broader market has not bottomed out is that Wall Street analysts have yet to downgrade a multitude of stocks, Kramer said. “You need to see more desperation on the part of analysts before we hit a truly sustainable bottom. We haven’t gotten there yet, they are still trying to catch up with the sale, ”Kramer said.

Kramer also said the stock did not fall enough to trigger a new wave of money in the market. The S&P 500 fell 1.5% in its first four trading sessions of the year, while the high-tech Nasdaq Composite fell 3.6%.

Nonetheless, he noted that the Dow Jones Industrial Average was “almost flat,” down just 0.3% from the start of the year. “Before you get a profitable bottom, you need all major averages to be bad,” Kramer said.

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