Jim Cramer reminds investors they’ll never make money in the stock market if they’re too afraid to buy.
Comparisons can sometimes be odious, especially when they keep you from buying great stocks, Jim Cramer told his Mad Money viewers Wednesday. There are plenty of pundits that will tell you stock picking is a fools game, but nothing could be further from the truth.
When the market cap of Tesla (TSLA) – Get Tesla Inc Report surpassed that of Ford Motor (F) – Get Ford Motor Company Report, the pundits were out in force telling investors that, obviously, Tesla was overvalued. But had you followed that advice, you would have missed out as Tesla shares surpassed that of General Motors (GM) – Get General Motors Company Report, and Toyota (TM) – Get Toyota Motor Corp. Report and then all three combined.
Over on Action Alerts PLUS, Chris Versace and Bob Lang are looking closely at CPI data showing inflation taking a bite out of consumer dollars. “Needless to say, we see that sobering view as a positive for the portfolio’s holdings in Amazon (AMZN) – Get Amazon.com, Inc. Report and Walmart (WMT) – Get Walmart Inc. Report.” Get in on the conversation and find out what they’re telling their investment club members on Action Alerts PLUS.
Then there’s the pundits’ obsession with the Federal Reserve, where they insist that rising interest rates will destroy our economy. But Tuesday, we heard from Fed chair Jay Powell that he’s not out to wreck the economy, he’s taking a common sense approach to monetary tightening.
The pundits will always tell you that buying the dips is stupid and that index funds are far better than individual stock picking. But in reality, isn’t buying at lower prices what you’re supposed to do? And if individual stocks are bad for you, how is a basket of them suddenly good for you?
When you’re a pundit, it pays to be bearish. If you’re a bull, and you get it wrong, you’ll be chastised forever. But if you’re bearish, well, you’re just being cautious.
Cramer told viewers they should have a list of stocks they want to buy, and the prices they want to pay, at the ready. When their stocks reach those prices, “buy them,” he said. You’ll never make money in the stock market if you’re too scared to buy.
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