CNBC’s Jim Cramer on Tuesday warned investors not to be so set in their ways that they miss the chance to make money.
“The level of negativity about stocks at this moment is the highest it’s been in years. … There’s a new class of investors who buy stocks not based on fundamentals, but based on anger, like they’re trying to win some sort of argument. That’s the wrong approach,” the “Mad Money” host said.
“Changing your mind is a virtue in this business,” he added.
Stocks rallied on Tuesday, with the benchmark S&P 500, Nasdaq Composite and Dow Jones Industrial Average closing above their 50-day moving averages for the first time since April.
Investors believe that the market could be bottoming after its deep downturn this year, fueled by climbing inflation, the Federal Reserve’s series of interest rate increases, the Russia-Ukraine war and Covid lockdowns in China.
Cramer echoed his reminder from earlier this month not to get too fearful over the market’s declines, and added that pessimism didn’t get him anywhere in past financial and economic crises.
“With the benefit of hindsight, my biggest mistake in each case was that I wasn’t bullish enough,” he said.