Jim Cramer Believes Investors Should Take Profits After Recent Market Rally

wagnerap

On Wednesday, CNBC host Jim Cramer stated that now is a good time for investors to be smart and take profits.

With the S&P 500 up more than 40 percent from its March 23 low, Jim Cramer on Wednesday said investors would be smart to take profits, according to CNBC.

“I’m not advocating that this is a ‘get-out-now’ moment. I just think we’ve had such a good run,” Cramer said on “Squawk on the Street.” “There’s so many signs that we’re getting, why not obey some of them and go and take a little off, and maybe you can say, ‘I took some off before something bad happened.’”

Cramer's comments were right before the opening bell on Wednesday which saw major US indexes dip as concerns about COVID-19 surges in Florida, Texas, Arizona, and California increased. Following the massive sell-off that started in February, markets hit their lows in late March and have been rising ever since.

Cramer emphasized that investors haven't made any money until “the money leaves the stock market and gets into your bank account.” He continued saying, “I think that sometimes we forget why we own stocks. We own stocks to create wealth.”

Furthermore, Cramer stated that those who reinvest profits into companies that have lagged during the rally will probably regret it. “There’s no sense for a lot of our investors who watch to rotate into something that hasn’t moved when they can just sit and wait with some cash,” he said. “Cash has been so vilified.”

Lastly, Cramer referenced recent general election polls that show presumptive Democratic nominee Joe Biden with a significant lead over President Donald Trump. ″[Biden] says the corporate tax rate should go up. That’s $20 off the S&P,” Cramer said.

View the Full Story Here.

Comments

Economics, Finance and Investing

FEATURED
COMMUNITY