Cramer’s Six-Item Checklist for Market Sell-Off End
By On Tuesday, CNBC's Jim Cramer gave a six-item checklist of what must happen before he will be ready to declare an end to the market sell-off.[0] Cramer noted that the aggressive selling is a reaction to Wall Street buying too much earlier in the year, on the bet that the Federal Reserve would lower inflation.[0]
Chase & Co.[1] CEO Jamie Dimon also discussed the state of the U.S. economy on Thursday, noting that consumers have lots of money and job opportunities, and wages are on the rise for low-income workers. He said rising wages are “fabulous” after decades of few real increases.[2] However, Dimon cautioned that the Federal Reserve may have lost control of inflation due to the government's massive borrowing and spending.[3]
Cramer's checklist includes a few of Dimon's concerns, such as the looming specters of “Russia, Ukraine, oil, gas, war, migration, trade and China.”[2] He said that, in order for the sell-off to end, the US economy must remain strong, the Federal Reserve must continue to enact quantitative tightening and inflation must be controlled.
Cramer also mentioned some bright spots in the economy, such as sectors like agriculture, oil, and gas, and tech firm Nvidia, whose stock jumped 14% after a positive quarter and a bullish outlook on artificial intelligence.[4] Despite the uncertainty, Dimon believes that “America's the most prosperous place on the planet” and the US will be fine with more normalization of interest rates.[5]
In conclusion, it remains to be seen if the market sell-off will end, but Cramer's checklist provides a good gauge for investors to follow.
0. “Jim Cramer says six things must happen before the market selloff can end” msnNOW, 21 Feb. 2023, https://www.msn.com/en-us/money/markets/jim-cramer-says-six-things-must-happen-before-the-market-selloff-can-end/ar-AA17LP4T
1. “Dimon Says the US Economy Is Facing Some ‘Scary Stuff' Ahead” Bloomberg, 23 Feb. 2023, https://www.bloomberg.com/news/articles/2023-02-23/dimon-says-the-us-economy-is-facing-some-scary-stuff-ahead
2. “Jamie Dimon Says Soft Landing Possible for Economy, but Warns of ‘Scary Stuff'” MarketBeat, 24 Feb. 2023, https://www.marketbeat.com/articles/jamie-dimon-says-soft-landing-possible-for-economy-but-warns-of-scary-stuff-2023-02-24/
3. “Jamie Dimon says a soft landing is possible, but ‘scary stuff' is ahead” Business Insider Africa, 23 Feb. 2023, https://africa.businessinsider.com/markets/jamie-dimon-says-a-soft-landing-is-possible-but-scary-stuff-is-ahead/remey57
4. “Jim Cramer Says Market Volatility Reflects Back-And-Forth Public Sentiment” NBC 5 Dallas-Fort Worth, 23 Feb. 2023, https://www.nbcdfw.com/news/business/money-report/jim-cramer-says-market-volatility-reflects-back-and-forth-public-sentiment/3201387/
5. “Jamie Dimon: Our Cynics “Are Terrible”” ValueWalk, 23 Feb. 2023, https://www.valuewalk.com/jamie-dimon-our-cynics-are-terrible/
