CNBC’s Jim Cramer warned investors on Wednesday that stocks may continue to fall — at least for the near future.
“I think we have…a period of consolidation, where we weed out weak investors. And we certainly weed out those who made personal mistakes and made personal mistakes, like buying bitcoin over $20,000 or messing with meme stock,” he said.
Stocks fell on Wednesday after retail sales data for December added to fears of a recession and investors cashed in on gains made earlier this month. The S&P 500 closed at its lowest level since December 15, and the Nasdaq Composite fell, snapping a seven-day winning streak.
“Right now, the market is running into one of the most overbought conditions we’ve had in ages. In the last couple of weeks, we simply went too far, too quickly. It’s not that all is well,” Cramer said.
He pointed at that time Microsoft said Although it laid off 10,000 employees, other industries remained more resilient. Many companies incl United Airlines Recently, you have You mentioned great quarters He added that so far this earnings season.
“Large sectors of the economy are holding up just fine,” he said. “The problem is technology, as I’ve been telling you for months on end.”
However, Cramer cautioned that that wouldn’t stop the market from taking more pain, at least in the short term. “The Bears – they’ll be out in full force tomorrow.”
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”