Business

Kramer says the rise in infrastructure stock prices is a sign of the newfound strength of retail investors.

CNBC’s Jim Kramer said the rise in infrastructure-related stock prices on Monday demonstrates the growing influence of retail investors on Wall Street.

The Mad Money presenter expressed surprise that companies like steel company Nucor and building materials supplier Martin Marietta rose during Monday’s session, which was the first since the House of Representatives passed an infrastructure bill worth more than 1 trillion dollars at the end of Friday.

“Historically, you had to buy before something good happened and then sell on the news. Smart money has always increased and decreased rates when news breaks out, often resulting in large losses for everyone who bought the news, ”Kramer said. “But not in this market. The new model is crazy if you have experience, but it is profitable for beginners. “

Kramer pointed to Nucor, in particular, to state his position. While he said he remained optimistic about Nucor, he said there were other people on Wall Street who felt that his stock had fully accounted for much of the potential benefit from the infrastructure deal.

“Earlier, when we learned that Congress had finally passed the Infrastructure Act, you might have seen Nucor open a couple of pips before impatient sellers came in and sparked buyers for wild profits. After all, they could have dumped this thing back to where it traded a week ago, ”Kramer said.

However, Kramer said the current market is no longer dominated by large institutional wealth managers.

“Individual investors have a lot of power,” Kramer said, noting that Nucor shares were up 3.6% on Monday. The shares are up 18.65% in the past month.

“You see, Nucor was too obvious to the pros. But ordinary individual investors no doubt wanted to be sure the law was passed before they pulled the trigger. “Kramer said.

“Professionals keep making mistakes because these new buyers are not used to Wall Street’s cynical trading methods,” he added. “They hear good news; they buy good news. This is a new world, simpler, less pessimistic, and you ignore this optimism at your own risk. “

Subscribe to here to subscribe to the new CNBC Investing Club newsletter Jim Kramerevery move on the market is delivered straight to your inbox.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button