CNBC’s Jim Cramer predicted Thursday that Wall Street will hit bottom soon and the market will be ready for a “tremendous rally.”
“Suddenly, conventional wisdom says there’s too much of everything, so prices are going to go down. Stock prices anticipate that. , and the utilities, who really do well only when there’s going to be a big recession,” the “Mad Money” host said.
“We priced in this negativity much quicker than you think. Maybe it will take a month, maybe just a few weeks. But it will happen and once it does, we will be set for an incredible, tremendous rally,” he said. he added later.
The Dow Jones industrial average fell 1.56% on Thursday, the last trading day of March. The S&P 500 fell 1.57%, while the Nasdaq Composite fell 1.54%. The Dow ended the quarter down 4.6%, the S&P 500 lost 4.9%, and the Nasdaq fell 9%.
“Although we still have an inflation problem, today’s action predicts a slump in sales of almost everything…I say, for now, keep it down. Accept that there will be a lot of stories about, say, how AMD will have too many chips, or GM too many cars, Lennar too many houses, Home Depot too much inventory,” Cramer said, listing some of the companies whose shares fell during Thursday’s session.
“The [Federal Reserve] it will definitely raise interest rates, maybe many times over, declines will accelerate, and inflation will definitely be brought under control. More importantly, the market will have anticipated all of this and bottomed out long before everything I just described,” he added.
Disclosure: Cramer’s Charitable Trust owns AMD stock.