CNBC’s Jim Cramer tells investors to avoid getting caught up in rating downgrades and general Wall Street trading, saying there are benefits to sticking with solid companies even when stock prices fluctuate. I repeated my position.
“If you look at the history of this incredible bull market, and it’s been an incredible bull market, there was ‘buy to hold, hold to sell, buy to hold, hold to sell. “These downgrades scare away great stocks that are at levels that may be temporarily too high but will recover later,” he said. “But once you hear about a downgrade, you can’t recover from that.”
Kramer said there was a “ridiculous amount of sell-side downgrades” on Monday. Dow Jones Industrial Average down 0.94%, S&P500 Reduced by 0.96%, Nasdaq Composite It fell by 1.18%. He acknowledged that the trade was bad, but said paying attention to too many downgrades could be bad for those investing in the market for the long term.
Even though he acknowledged that Amazon faces several hurdles, but he did not agree to lower the price of Wells Fargo’s stock. He said mega-cap stocks have faced and bounced back from obstacles before, and it was only a matter of time before that happened. He noted that the stock price has rebounded after falling sharply in early August, when the company reported a drop in revenue.
Mr. Kramer also opposed the downgrade of Mr. Jefferies. apple. He said the company may face some headwinds in the short term with the launch of the iPhone 16, but maintained that the company does not have a track record of releasing substandard products. He went on to say that the downgrade is “a gamble against Apple’s entire culture of excellence.”
“Wall Street is addicted to trading,” Kramer said. “But if you manage your own money, you shouldn’t listen to this kind of trading advice. Trading is a full-time job, so you don’t have the luxury of doing what they want.”
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