Bullish investors usually triumph in the end, CNBC’s Jim Cramer suggested. He explained why he thinks it makes sense to stay in the market, reviewing recent events that worry many on Wall Street.
“If you’re going to think of the market as a tug of war between the bulls and the bears, would you at least think of the bulls as the favorite and give them the benefit of the doubt?” he said. “Because if history’s any guide, the bull deserves it.”
The market is not “a bunch of coins to be flipped,” Cramer said, but “a collection of companies to be invested in.”
Many are concerned about how the government shutdown impacts the market, Cramer said. But stocks have done well, he continued, even though thousands of government workers are furloughed and economic data has been delayed. The averages managed to close in the green Thursday, the 23rd day of the shutdown. Historically, Cramer suggested, shutdowns haven’t had a big impact on the market.
The consumer price index is set to be released Friday, Cramer pointed out, and he encouraged investors not to catastrophize if the numbers are hot.
Cramer also suggested fears about tensions between the U.S. and China can be overblown. He said it seems President Donald Trump has managed to compromise with China even though he often shares negative sentiments about the country.
The first few weeks of earnings season have also quelled some concerns Cramer said, noting that it seems tariffs have been factored into many companies’ reports and their shares prices long ago. Even though investors grew fearful about the banking industry after a few regional banks revealed sour loans, Cramer said major financial institutions that have reported so far are seeing a low number of defaults as a percentage of loans.
“When I started working, I heard the fabled three words that I’ve heard for most of my working life, including from my own lips when I got it wrong, and that is, ‘get out now,'” Cramer said. “Since I first heard ‘get out now,’ the Dow Jones Industrial Average has gone from 1,000 to about 46,000.”
