CNBC’s Jim Cramer told investors they should not lose faith in the market’s ability to recover after Wednesday’s dips.
“History is very clear: it says you have to keep going. The S&P 500 has already made a successful 50% recovery from its massive decline, and in the 21 times since the Great Depression, that has meant the downturn is over every time,” Kramer said, noting The averages regained 50% of their post-November decline the day after yesterday.
“Could this time be different? Sure, but don’t ignore the very real possibility of good things,” he added.
The “mad money“Host, from Investors cautioned against unjustified optimism on Tuesday, he cited information from legendary market technician Larry Williams for his analysis of the future path of the market. Kramer relied on Williams’ analysis of Make market forecast In the past.
Cramer listed several factors, in addition to the pattern that Williams has spotted, that suggest markets could recover, including the Russia-Ukrainian war that appears to be get into troubleWhich could lead to an end sooner rather than later.
He also referred to the Federal Reserve’s speech interest rate hikeAnd the Fed Chairman Jerome Powell’s Strong Comments On Inflation and the covid-19 pandemic Possibly ending soon as additional market factors.
“This is a harsh environment with a lot of really horrific possibilities, and I wouldn’t be surprised if tomorrow is worse than today. … But in moments of great doom and gloom, as I saw today, I need you to remember that the bears may be wrong,” Kramer said.