CNBC’s Jim Cramer on Tuesday said that while there are three economic and geopolitical issues currently roiling the market, only one needs to resolve for the market to bottom.
“There are three culprits behind our decline: The [Federal Reserve], Russia and China. Any one of them could put an end to this meltdown,” the “Mad Money” host said.
Cramer’s comment referred to the Federal Reserve’s plan to take several interest rate hikes this year and tighten its balance sheet to control soaring inflation, the Russia-Ukraine war and China’s Covid-related lockdowns.
“We’ve been worrying about them for weeks or months at this point, and I think we need to start preparing ourselves for the possibility that something may actually go right. That’s been the usual trajectory of these horrifying sell-offs,” he added.
The S&P 500 fell 2.8% on Tuesday while the Nasdaq Composite tumbled 3.95%. The Dow Jones Industrial Average dropped 2.4%.
“I never want to be sanguine about a sell-off, especially this one. The damage is severe, especially in the technology stocks, and there are real reasons for the fear. But … you have no idea whether we could have a snapback,” Cramer said.
He added that even if all three of the issues he highlighted don’t resolve soon, there are benefits to being ready if even one or two of the problems settle.
“If one of them gets solved, we might find a bottom worth testing a month from now. … If two get solved, we’re going to get a massive rally,” he said.