CNBC’s Jim Cramer on Tuesday told investors that good things will come to those that wait for the Federal Reserve to stop raising rates of interest.
“I all the time say there isn’t any give and not using a get. Straight away, the give is that you simply get your portfolio all taking place — the Fed’s bringing the pain,” he said. “The get is that you will eventually be rewarded with lower inflation followed by lower rates. We’re very much in the primary phase, though, the give phase.”
The benchmark S&P 500 and Nasdaq Composite notched a fifth consecutive day of declines while the Dow Jones Industrial Average closed barely up.
The producer price report, consumer price index and retail sales report might be released on Wednesday, Thursday and Friday, respectively. Wall Street expects the information to make clear whether the central bank will proceed its path of aggressive rate of interest hikes — and whether the economy will enter a recession.
“Aside from last week’s nonfarm payrolls report, the Fed really only cares in regards to the consumer price index at this moment, and that comes Thursday. Those numbers are potential bombs,” Cramer said.
He reminded investors to not let temporary rallies give them hope that the market’s declines are over unless the information shows the economy is cooling. “You could have to do not forget that the bears, not the bulls, are in charge,” he said.
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