CNBC’s Jim Cramer warned that the market hasn’t found its bottom, advising against buying the dip. Tom Lee of Fundstrat echoed this caution, urging investors to hold off on purchasing stocks, anticipating a forthcoming wave of selling that could signal a bottom in the weeks ahead.
What Happened: Cramer, during his show “Mad Money,” suggested that the market is still in a downward trend, reported CNBC. He cautioned investors to refrain from buying at the start of the session, stating that this is not the right move.
Meanwhile, Lee cautioned that the recent surge in the VIX, the market’s volatility gauge, could prompt further selling, adding to the short-term pressure on stocks, reported Business Insider.
“While we normally like to buy dips, as we said earlier this week, the surge in the VIX says we gotta take buying the dip extra slowly,” Lee said in a video sent to clients on Thursday.
Despite this, Lee suggested that a buying opportunity might emerge soon, as the market seems poised to bottom out, with positive catalysts such as robust corporate earnings growth and potential Fed rate cuts still in play.
“I think there’s a widespread belief that you can still buy the dip. That’s been the right move ever since long-term interest rates peaked back in October,” he said. “Now, though, buying the dip is the quintessential wrong thing to do.”
Cramer pointed out that ...