Jim Cramer says investors are worried about the crisis in Ukraine and the struggles against inflation here at home. They should expect more market uncertainty.
Investors are fighting a war on two fronts, Jim Cramer told his Mad Money viewers Wednesday. First, there’s the crisis in Ukraine, where there are still many unanswered questions as to the direction things are headed. Then there’s our domestic war, the war on inflation, where there are also unanswered questions as to when, and how forcefully, the Federal Reserve will act.
When it comes to Ukraine, many of the negatives are still not baked into stock prices, Cramer said. While it looks increasingly unlikely that we’ll see a diplomatic solution to the crisis, we still don’t know exactly what the conflict will look like or how long it might last.
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But Cramer said the bigger worry for investors is our war on inflation. Many investors are too young to remember our prior battles with inflation, which is why the market’s volatility remains high.
Today, we saw shares of Vertiv (VRT) crater 36.7%, after the company saw its input costs run completely out of control. Yet our Fed, which has repeatedly pledged to combat inflation, has not only failed to act on interest rates, it is still buying bonds to curb interest rates.
Cramer predicted that stocks will rally if and when the Fed finally gets its act together and investors can finally see the end of these supply chain nightmares. Until that happens, or until we have more clarity on Ukraine however, investors can expect more torturous days like today.
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