CNBC’s Jim Cramer on Thursday said that while investors should tread carefully as the stock market continues to be stormy, they also shouldn’t be afraid to make moves to strengthen their portfolios.
“We want to be very careful to buy stocks with stories that can handle a slowdown. … A good portfolio manager never sells his winners to fund his losers, even if it’s embarrassing. You’ve got to give the losers the boot,” the “Mad Money” host said.
The Dow Jones Industrial Average fell 0.33% on Thursday while the S&P 500 dropped 0.13%. The tech-heavy Nasdaq Composite inched up 0.06%.
“But we’re not complacent, either way. We are very worried about the wealth destruction, for instance, in crypto. We hang our heads on the once-great FAANG stocks. But we can never stop looking for opportunity,” he added, referring to his acronym for stocks of Facebook-parent Meta, Amazon, Apple, Netflix, and Google-parent Alphabet.
Cramer’s comments come after cryptocurrencies saw a sell-off that shed over $200 billion from the entire market in a day. Bitcoin dropped below $26,000 for the first time in over a year.
Ether, the second-largest digital currency, dropped below $2,000 for the first time in almost a year. The Terra project’s UST stablecoin lost around 75% of its value on Wednesday before gaining slightly while its sister token, luna, lost around 98% of its value over the last week.
Stablecoins are seen as safe havens by digital currency investors when the market is tumultuous, but UST has teetered in value.
In his analysis of the stock market, Cramer emphasized its unpredictability, noting that Thursday appeared to be a perfect opportunity for a rally.
“The market should’ve bounced hard today because interest rates were down and there was no real bad news,” he said.
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