Position your portfolio for a Fed win and avoid these three market mindsets, Jim Cramer says

Position your portfolio for a Fed win and avoid these three market mindsets, Jim Cramer says


CNBC’s Jim Cramer told investors on Thursday that there are four camps of thinking in the current market but only one worth listening to: the one that stays in the market and bets on the Federal Reserve winning its battle against inflation.

“I wouldn’t cash out. Stay the course, muddle through and eventually work the way through the events that caused inflation — Russia, China, the supply chain mess,” the “Mad Money” host said, referring to the Russia-Ukraine war and Covid factory shutdowns in China.

“Once that happens … you’ll want to have some stock exposure, because when the market turns, it tends to turn on a dime,” he added.

Cramer said that while his mindset is shared by one cohort of investors, there are three more camps of thinking that investors should ignore.

Here are the four camps of market mindsets as explained by Cramer, starting with the one he is a part of and believes other investors should be, too.

Positioning portfolio for a Fed win by year-end

This group, which Cramer is a member of, believes there’s been tremendous destruction in the stock market already … the likes of which we’ve rarely seen,” he said. “And we’re probably still not done with the pain, but after being way too timid, the Fed has indeed woken up.”

He added that this camp believes the Fed will win as long as Fed Chair Jerome Powell continues to act aggressively against inflation.

Pessimistic billionaires

Cramer says that it’s not a good idea for the average person to take market advice from this cohort of pessimistic billionaires, who are able to take bigger risks and have much more cash to spare than the average person. 

“Some of these guys are very smart, and they sound very convincing, but their analysis only applies if you’re already super rich. If you’re a regular person, you’re going to have a different set of financial priorities,” he said.

Severe recession believers

This cohort believes the Federal Reserve is too late in raising interest rates and that there needs to be a recession for inflation to cool down, or that a recession is inevitable, according to Cramer.

“The maximum pain camp, they refuse to recognize that both the consumer and the enterprise are the healthiest they’ve ever been. …  They’re too binary in their thinking: They can only imagine rampant inflation or a miserable recession, but those are just the most extreme outcomes,” he said.

Stagflation enthusiasts





Source

Space startup Varda raises 7 million in funding to make drugs in orbit
Business

Space startup Varda raises $187 million in funding to make drugs in orbit

Pavlo Gonchar | Lightrocket | Getty Images Space startup Varda announced on Thursday that it has raised $187 million in Series C funding, led by venture capital firms Natural Capital and Shrug Capital, to continue advancing drug manufacturing in space. The latest round included participation from Peter Thiel, Lux Capital, Khosla Ventures and Caffeinated Capital. […]

Read More
How family offices are betting on the sports boom from fantasy apps to pickleball courts
Business

How family offices are betting on the sports boom from fantasy apps to pickleball courts

Key Points A third of investment firms of the ultra-rich have invested in sports, according to a new family office survey by BNY Mellon. While billionaire sports-team buyouts get the headlines, family offices are increasingly investing in adjacent assets like live-viewing venues and betting apps. Here’s how the family offices of ultra-rich sports team owners […]

Read More
Delta’s summer travel outlook tops estimates as CEO says high-end demand is holding up
Business

Delta’s summer travel outlook tops estimates as CEO says high-end demand is holding up

A Boeing 767-332(ER) from Delta Air Lines takes off from Barcelona El Prat Airport in Barcelona on Oct. 8, 2024. Joan Valls | Nurphoto | Getty Images Delta Air Lines trimmed its 2025 profit forecast as it deals with lower-than-expected demand this year and the industry manages a glut of flights, but the carrier’s outlook […]

Read More