CNBC’s Jim Cramer said Tuesday the relentless negativity surrounding the market is creating opportunities for investors willing to look past the headlines and endure a little more near-term volatility.
His comments came as rising Treasury yields, persistent inflation, and elevated oil prices weighed on stocks. All three of the major indexes finished the day in the red. The 30-year Treasury yield touched 5.33%, its highest level in nearly two decades, while Brent crude topped $90 a barrel as U.S.-Iran negotiations remained stalled. However, Cramer argued those concerns are overshadowing signs of resilience in the economy.
“I know ‘not bad’ isn’t much of a clarion call. But you’re certainly getting better prices than you’d see if the backdrop were good,” the “Mad Money” host said. “Maybe that’s the way to think about it. That’s the opportunity, and the cost seems to be manageable, even if this likely isn’t the exact bottom.”
“I am saying that it’s not all bad … that it could get better,” he said.
Cramer pointed to oil and bonds as two areas where fears may be overdone. While higher crude prices are adding to inflationary pressure, he doesn’t expect Brent crude to rise much beyond $100 as additional supply comes online. Higher Treasury yields could also eventually attract buyers, he said, as investors can lock in increasingly attractive returns on government debt. Bond yields move inversely to prices, so all else equal, an increase in buyers would push down yields.
He also sees opportunity in technology. With a record number of short bets on the Nasdaq 100, Cramer said he is looking to use the weakness to gradually buy beaten-down data center stocks. He highlighted Micron, which Cramer’s Charitable Trust, the portfolio run by CNBC’s Investing Club, recently purchased amid strong demand for memory used in AI infrastructure.
Resilient consumer spending gives Cramer another reason not to become too bearish. Airbnb reported strong travel demand, while Club holding Home Depot delivered what Cramer called its “best quarter in five years.”
“All I can tell you is that, at the end of the day, we’re a service economy,” Cramer said. “If service is doing well then you can’t be too negative.”
Cramer isn’t arguing the market’s problems have disappeared or calling an exact bottom. His point is that widespread pessimism is pushing down prices even as parts of the economy remain strong — potentially giving investors a more attractive entry point if investors’ worries don’t fully come to pass.
