Jim Cramer asks what if we stay the course and things go right?
The history is very clear: At times like these, you need to stay the course, Jim Cramer told his Mad Money viewers Wednesday. As of Tuesday, the stock market had given back 50% of its gains since November. That’s an event that has only happened 21 times since 1929. And each of those events was the perfect time to buy.
It’s easy to be overwhelmed by the daily doom and gloom of everything that’s going wrong, Cramer admitted. It’s far harder to think of everything that could go right.
Time to restart your engines? Over on Action Alerts PLUS, co-portfolio managers Bob Lang and Chris Versace are adding a certain performance sports car company to the bullpen. “If we see a move back to the 190s it could be a good spot to start adding shares, but we might not wait for that to happen,” they say. RACE over to Action Alerts PLUS and find out what they’re telling their investment club members.
What if… Putin simply can’t win in Ukraine and must accept a limited victory or no victory at all? As soon as the shooting stops, food and energy prices would collapse and stocks would soar.
What if… the economy responds to the Federal Reserve’s rate hike faster than expected? Supply chain problems would be solved and inflation would fall.
What if… the housing market suddenly slows due to rising rates and home prices? That too would hit the brakes on a large swath of the economy and usher in a recovery.
What if… the pandemic is really over? We can’t even imagine what things will look like as travel and restaurants and the world at large returns to normal.
Any one of these events could happen tomorrow and send stock prices higher. That’s why now isn’t the time to panic and isn’t the time to sell. Staying the course isn’t easy, but it’s far more profitable than giving up.
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