CNBC commentator Jim Cramer says the Greek debt crisis won’t have a negative impact on U.S. stocks.
“These are things you deal with,” he said on the air.
“Obviously it’s bad for the stock market until they’re sorted through.”
But the reality is that countries don’t file for chapter 11.
“They don’t go out of business. The people don’t go to another country,” Cramer said.
“Countries do default (on their debt). Then the IMF comes down, and they do a restructuring. In the meantime, you just trade on it.”
What investors have to do is assess which stocks suffer for no reason.
“That’s about 90 percent of the market,” Cramer said.
“We can treat every single crisis as a reason to sell Coca Cola, or we can accept the fact that Coca Cola is a darned good company that was able to make a lot of money.”
U.S. companies are fundamentally strong, Cramer says.
“If you want to go sell General Mills because of a situation involving Greek debt, be my guest. I’ll buy it from you nine days out of 10.”
Others agree with Cramer that the stock market will stay volatile until the European debt situation is resolved.
“It’s going to continue to be pretty choppy,” Mark Bronzeo, a money manager at Security Global Investors, told Bloomberg.
“Domestically, the economy is very slowly getting better. That’s the good news. But, of course, we have the sovereign risk issues in Europe.”
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