Jim Cramer says he’s optimistic about the U.S. economy and the stock market, but a lot depends on the Federal Reserve.
There’s a lot of doom and gloom crossing our screens these days, Jim Cramer told his Mad Money viewers Tuesday. But when it comes to your portfolio, it’s important to remember that stocks have been falling since November, and that makes us a lot closer to the bottom than to the top.
The world hasn’t seen a crisis like the one we’re seeing in Ukraine for a long time, which makes it nearly impossible to trade on the headlines. No one knows what sanctions will do to earnings or how individual companies might be affected. But negativity and lower stock prices aren’t the only outcome.
Over on Action Alerts PLUS, co-portfolio managers Chris Versace and Bob Lang say the longer oil prices remain at elevated levels, the more likely we’re bound to see interest in EVs climb, even ahead of the expected EV charging station build-out. Get in on the conversation and find out what they’re telling their invest club members on Action Alerts PLUS.
Federal Reserve chair Jay Powell is set to speak over the next two days and there is some hope. Powell could tell the market what it needs to hear — that the first rate hike will be coming soon, after which the Fed will pause to “wait and see.” If that happens, then oil prices will be in charge.
Rising oil prices are a tax on the entire market, so as oil heads higher, demand will slowly be eroded. That, in turn, will fix our supply chain crisis and ultimately lead to a boom in housing and autos and reignite the stock market.
Given given that stocks are already down big from November and given that things can only get better from here, there might be a glimmer of hope on the horizon. We just don’t know who it will get here.
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