Tags: Cramer | stock | risk | market

Jim Cramer: Don't Dive Back Into Stocks Yet

By    |   Friday, 18 July 2014 10:47 AM

While CNBC commentator Jim Cramer often recommends buying stocks after they've tumbled, he's more cautious in the wake of Thursday's decline.

The S&P 500 dropped 1.2 percent Thursday after news that a Malaysia Airlines plane was shot down over eastern Ukraine before rebounding Friday morning.

Cramer offered two reasons to hold off on purchasing stocks now. "First, the market was barely down on the news. Our averages have gone so high that even 130 points down on the Dow [Jones Industrial Average] when it is at 17,000 is next to nothing," he said on his "Mad Money" show.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!


The Dow dropped 161 points, or 0.9 percent, to 16,977 Thursday.

"Second, I cannot sanction any buying until we know more details about the crash."

The strengthening of U.S. sanctions against Russia announced by President Obama could inflame tension further, Cramer explained. And the Israeli invasion of Gaza this week adds another geopolitical risk, he added.

"With markets near their all-time highs, I believe that as pros assess these developments over several days, the inclination will be to take profits, not to buy. At this point you have to monitor developments very closely and see what develops."

But Jim Paulsen, chief investment strategist at Wells Capital Management, doesn't think the plane shoot-down will have a lasting impact on stocks.

"This is a terrible tragedy, but the odds of it developing into something that's going to be a sustained market event are fairly low," he told Bloomberg.

"You get a lot of investors coming in today [Friday] and taking advantage of opportunities in the sense of having a re-priced market yesterday [Thursday]."

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
InvestingAnalysis
While CNBC commentator Jim Cramer often recommends buying stocks after they've tumbled, he's more cautious in the wake of Thursday's decline.
Cramer, stock, risk, market
292
2014-47-18
Friday, 18 July 2014 10:47 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved