Tags: jim cramer | games | stocks | investors

Jim Cramer: 'I've Never Seen So Many Games Played With Stocks'

By    |   Tuesday, 09 June 2020 04:35 PM

Investment guru Jim Cramer warned savvy investors to avoid the risky stocks favored by day traders amid rampant speculation in the market.

“I’ve never seen so many games played with stocks, which is that, ‘hey, we’re taking this one up today. We’re taking that one up today,’” Cramer said on CNBC.

“Please be careful when you see a reference in Twitter which says ‘we’re taking up Hertz’ or ‘get on board the Chesapeake train,’” Cramer said. “Because you’re not going to be the one that makes the big money. You’re likely going to be the one that loses the big money,” he said.

Cramer said investors should look at buying shares of larger, less-volatile stocks.

“I want people very badly to be in the stock market. And how are they going to learn other than buying these small dollar stocks and thinking that that’s how you make money,” Cramer said.

“I don’t want them to be blown out,” he continued. “I do want them to understand that you can do small dollar stocks now like never before, it’s just that you have to do it in fractions. And that fractions is a great way for people to learn how to buy an Amazon or how to buy an Alphabet, so I just wish that they would switch the direction from companies that may be bankrupt or overvalued.”

Meanwhile, as a sense of euphoria sweeps through global equity markets propelling stocks to regain $21 trillion in value from a March low, the asset class is looking increasingly frothy.

While stock luminaries who had advocated for a bull zone look like winners in hindsight, the debate goes on about whether the rally is a bear market bounce, doomed to end, Bloomberg said.

Global equities have climbed back to levels last seen in February, when the coronavirus began spreading rapidly outside of China. The 42% surge from a March low is the best advance over an equivalent time-frame since 2009 for the MSCI ACWI Index that includes stocks in both the emerging and developed world. The gauge is now trading at 20 times next year’s profits, the most expensive since 2002.

“This rally is a function of government support being thrown behind the economy,” said Paul Sandhu, head of multi-asset quant solutions and client advisory for Asia Pacific at BNP Paribas Asset Management. “There are key risks that could lead to more volatility ahead over the short term, which is why we continue to hedge our portfolios on the downside while still looking for opportunities to add risk for the medium to long term.”

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Investment guru Jim Cramer warned savvy investors to avoid the risky stocks favored by day traders amid rampant speculation in the market.
jim cramer, games, stocks, investors
Tuesday, 09 June 2020 04:35 PM
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