Key Points
- CNBC’s Jim Cramer said Tuesday’s volatile session shows why doing nothing can be a helpful investment strategy.
- “It’s very hard to make money in this kind of environment,” he said on “Mad Money.”
Another day of sharp moves in the stock and oil markets illustrates why individual investors need to exercise restraint during the Iran war, CNBC’s Jim Cramer said Tuesday. “If you’re buying and selling stocks at this very moment, instead of sitting on your hands, you’re gonna drive yourself crazy. You’re gonna make mistakes and you’ll end up looking like a fool,” Cramer said on “Mad Money.” “The backdrop is pure lunacy,” he added. “It’s very hard to make money in this kind of environment.” The S & P 500 ended Tuesday’s choppy session moderately lower and the Dow Jones Industrial Average also modestly fell. The Nasdaq ended the day basically flat. All three major indexes had spent time Tuesday solidly higher and lower, so their closing levels obscure all that happened during the trading day. That’s coming off Monday’s wild session in which the Dow erased a more than 800 point loss to close up more than 200 points , in the wake of President Donald Trump saying the war in Iran could be over soon . But by the time Tuesday’s opening bell came around, Cramer argued that investors had to confront rhetoric from Washington — namely, an early morning press conference from Defense Secretary Pete Hegseth — that sounded much harsher than Trump’s Monday afternoon message. The oil market also went on a wild ride Tuesday, falling as traders anticipated supply coming onto the market through a coordinated release of strategic petroleum reserves from countries around the globe. But the losses picked up steam late in the session after Energy Secretary Chris Wright posted on X that the U.S. Navy successfully escorted a tanker through the Strait of Hormuz — only for the White House to walk back that claim. Oil would go on to settle well off its lows of the session. “You can sit on your hands when the situation’s this unclear,” said Cramer, adding that this is easier than worrying about social media posts. With all the mixed signals coming, Cramer said everyday investors have a distinct advantage over the professional traders who have to answer to concerned clients. “This kind of session is poison to hedge fund managers because they feel compelled to take action on days like today,” Cramer said. “If you’re managing your own money, there’s a simple way to handle today’s craziness: you do nothing.” Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclaimer Questions for Cramer? Call Cramer: 1-800-743-CNBC Want to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com