Tags: jim cramer | things | feel | right | country | slowdown

Jim Cramer: US 'Could Be on the Verge of a Significant Slowdown'

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By    |   Wednesday, 29 May 2019 03:09 PM

Investment guru Jim Cramer warns that the U.S. economy appears to be heading into serious trouble because he believes “things just don’t feel right” in today’s America.

“I think we could be on the verge of a significant slowdown in the U.S. economy if something doesn’t change soon,” Cramer said on CNBC. “Consumer and corporate confidence [is] waning. Things just don’t feel right in this country,” the “Mad Money” host said.

He said the current volatile stock market changes direction seemingly each time a new headline surfaces about trade tension or political uncertainty. He doesn’t blame most traders for being confused, scared and afraid to make any sort of move.

“You’re damned if you do and you’re damned if you don’t,” he said. “Be patient. Don’t pay up for anything here. Wait for your pitch. Right now, in most sectors, it’s still too early to take a swing,” he said.

However, Cramer admitted that “yields don’t protect you anymore ... the stocks keep falling on fears of a worldwide tariff-related slowdown.”

He noted that dividend stocks have not gone higher as they usually do when U.S. Treasury bond yields fall to their current levels.

 “On the one hand, there are a lot of good reasons why you can’t live with this market. But, on the other hand, you can’t live without it, either,” he said. “Avoiding stocks is just as risky as owning them here.”

To be sure, Wall Street’s main indexes hit a near three-month low on Wednesday, as growing fears of a protracted trade war between the United States and China sent investors scurrying for the safety of government bonds.

Chinese newspapers warned on Wednesday that Beijing could use rare earths to strike back at the United States after President Donald Trump remarked he was “not yet ready” to make a deal with China over trade, Reuters explained.

Fueling worries, China’s Huawei Technologies Co Ltd filed a lawsuit against the U.S. government in its latest bid to fight sanctions from Washington.

“The question about what China will do with rare has always been there, it is certainly alarming and ratchets up the level of uncertainty,” said Tom Martin, senior portfolio manager at GlobAlt Investments in Atlanta.

“It’s a flight to safety in the United States. There are fears that are driving investors to Treasuries and you have a market that reached its peak about a month ago.”

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Investment guru Jim Cramer warns that the U.S. economy appears to be heading into serious trouble because he believes “things just don’t feel right” in today’s America.
jim cramer, things, feel, right, country, slowdown
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2019-09-29
Wednesday, 29 May 2019 03:09 PM
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