Investors betting short term will miss out when Powell ‘wins’

0 6

CNBC’s Jim Cramer on Wednesday advised investors to think of the bigger picture when it comes to the Federal Reserve’s battle against inflation and its effect on the stock market.

“The short-term camp is made up of people who either can’t handle any pain or don’t believe in [Fed Chair Jerome] Powell and want to get out,” the “Mad Money” host said.

related investing news

Market got you feeling upside down? Get your portfolio ready for when stocks explode higher

CNBC Investing Club
Market got you feeling upside down? Get your portfolio ready for when stocks explode higher

“I think Powell wins the game and when he does, we’ll be on the field and the short-termers will be at the bottom of the stands,” he added.

The Fed raised interest rates by 75 basis points on Wednesday and signaled that it will continue its aggressive campaign against inflation.

Stocks ended the volatile trading session down as Wall Street digested the news.

Cramer acknowledged that there will be pain ahead for the market, and advised investors to bet with the Fed if they want their portfolios to stay intact in the long term. 

People who believe in Powell’s vision — whom Cramer calls the silent majority — understand the central bank has to increase interest rates to avoid pain even further down the line, he said.

“The silent majority wants to be able to buy a house at a reasonable price without having a bidding war over it,” he said. “The silent majority knows that their stocks are going to be worth less when they retire if Powell doesn’t act now.”

Jim Cramer breaks down the two broad camps emerging as the Fed battles inflation

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Trusted Bulletin is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave A Reply

Your email address will not be published.