Cramer thinks the mid-June market bottom will hold despite the many troubles facing stocks

Cramer thinks the mid-June market bottom will hold despite the many troubles facing stocks


Cramer believes the mid-June market low will be the bottom

CNBC’s Jim Cramer said Monday he believes the stock market low of mid-June will hold as the bottom in this terrible year of selling. However, he acknowledged that it won’t be easy and that Wall Street bulls do face a host of forces that appear to be working against them.

“Sometimes I just want to tell these doubters, as I constantly tell strangers, don’t give up the ship,” Cramer said on “Mad Money,” hosting the show from Seattle.

related investing news

Jim Cramer: Here's why I still believe we've seen the lows of this tough market

CNBC Investing Club
Jim Cramer: Here’s why I still believe we’ve seen the lows of this tough market

Cramer said he certainly understands why the bears look to be in the driver’s seat despite Monday’s rally that built on last week’s rally. In fact, the S&P 500’s advance last week broke a three-week losing streak.

Could we be getting a bear market rally after weeks of selling? Of course, Cramer said. It’s September after all, the worst month of the year for stocks. And after a terrible August, which traditionally is a pretty good month for stocks, he said the selling could return. But he doesn’t think the market will break below the mid-June low.

Cramer said, inflation — no matter what Tuesday’s consumer price index for August actually says — is a problem. Just how big of a problem, that’s the big question as investors ponder whether the Federal Reserve will increase interest rates 75 basis points or 50 basis points later this month. The former would be a third straight hike of that magnitude. That’s what the market is betting on nearly unanimously.

Cramer also gives a nod to the bear arguments that the government’s environmental agenda is not very market friendly, that more layoffs are coming in corporate America and tech is still way overvalued.

While all true, Cramer is focused on inflation getting better not worse, because commodity prices peaked long ago, but he also favors a bigger 75 basis point rate rise to help cap wage inflation.

Outside of all that, Cramer sees a truly positive market force developing: the Ukrainians driving the Russians out. If that were to happen, he said oil, gasoline and natural gas prices — all elevated due to disruptions from the war — would plummet. That would give a tremendous tailwind to the market.

“Obviously, this whole war has been a horrifying humanitarian disaster, but if Ukraine can win, that’s huge for the stock market,” Cramer said. “Same for food prices. And the euro could finally make a comeback, allowing our international companies to make more money overseas.”

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]





Source

Here are the retailers raising prices as Trump tariffs take hold
Business

Here are the retailers raising prices as Trump tariffs take hold

A person picks out clothing in a store as retailers compete to attract shoppers and try to maintain margins on Black Friday, one of the busiest shopping days of the year, at Woodbury Common Premium Outlets in Central Valley, New York, U.S. November 24, 2023.  Vincent Alban | Reuters Consumers who hoped tariffs would not […]

Read More
This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More