Jim Cramer Says We’re in a Bull Market; Urges Investors To Buy the Dip

Sahana Kiran
Jim Cramer
Source – CNBC

2022 was a tough year for financial markets. Economic conditions like rising inflation rates added to the misery. However, CNBC host, Jim Cramer pointed out that good times were here.

Appearing on a recent episode of Mad Money, Cramer noted how investors need to prepare for the bull market.

CNBC host Jim Cramer further said,

“If we’re in a bull market, and I think we are, you have to prepare yourself. We have to prepare for the down days now because in a bull market, they’re buying opportunities.”

On Tuesday, stocks witnessed prominent growth. Fuelled by solid earnings and optimistic inflation data, S&P 500 recorded its best January since 2019. Nasdaq Composite, on the other hand, witnessed a profitable January since 2001.

In order to hit 4,076.60, S&P 500 rose by 1.46%. An increase of 1.67% brought the Nasdaq Composite to 11,584.55. Similar to Cramer several others in the market also saw potential following January’s rally. Carson Group’s Ryan Detrick highlighted the possibility of a bullish slingshot and tweeted,

Additionally, according to Cramer, the market’s capacity to increase as a result of positive earnings announcements shows that it still has the potential to grow.

The market is up after stocks dipped to start the week one day earlier. Cramer suggested that Tuesday’s turnaround demonstrates that premium names would ultimately see a recovery in the present market.

Elaborating on the same, Cramer added,

“Even if it doesn’t reverse today, well then, there’s always tomorrow, so don’t think of betting against it.”

Cramer Sheds Light on the Bear Market

While accumulating ahead of the bull market was a favorable thing to do, Cramer detailed how the bear market works. He said,

“Bear market goes the opposite way — stocks open up, then get clobbered and you feel humiliated. Good earnings mean nothing except price target cuts.”