Jim Kramer is the host of the CNBC series Mad Money, and previously worked for large companies such as investment bank Goldman Sachs.
On Thursday, Cramer recommended that investors seize the opportunity in a stock market that he believes is presenting itself now, and believes it would be wise to buy the stock now. This comes on the back of how the US central bank, the Federal Reserve, believes it will follow monetary policy in the future.
When the Fed is out of the way, there is a golden opportunity to load up in the stock market. In recessions, the Fed has a good incentive to pause rate hikes. This break means you have to buy the stock, Kramer writes for CNBC.
US indices rose on Thursday despite the fact that US GDP declined in the second quarter after declining in the first quarter as well, which technically means the country is in recession. Wall Street’s main indexes also rose sharply on Wednesday.
Cramer acknowledges that some stocks will be negatively affected by higher interest rates. He also says companies like Walmart and Target will be able to struggle in a time of high inflation.
– This is a recession surplus, not a layoffs recession. This means that one should buy shares if there is no surprisingly negative news from the Federal Reserve, Cramer concludes.
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