CNBC’s “Mad Money” host Jim Cramer encouraged investors to view potential market pullbacks as opportunities rather than threats. He suggested that a pullback could be on the horizon and advised investors to prepare by raising some cash.
What Happened: Cramer, on Wednesday, referred to the results of CNBC’s Delivering Alpha Stock Survey, where a majority of investors predicted an imminent market correction. He urged investors to welcome the decline and use it as an opportunity to buy quality stocks at lower prices, reported CNBC.
He stated, “I think people are right to expect a pullback here. But that’s not a reason to head for the hills. Instead, you want to raise a little cash, watch the market broaden — as it is doing — and then buy your favorite tech stocks when they come down.”
He likened pullbacks to rain and portfolios to plants, emphasizing that both are essential for growth. Cramer also advised investors to ride out some of the turbulence, warning that constantly trying to avoid pullbacks could lead to missing out on the next rally.