CNBC’s Jim Cramer said on Thursday that while investors should tread carefully as the stock market continues to be tumultuous, they should also not be afraid to take steps to strengthen their portfolios.
“We want to be very careful about buying 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, Mad Money host said.
The Dow Jones Industrial Average fell 0.33% on Thursday, while the S&P 500 fell 0.13%. The tech-heavy Nasdaq Composite rose 0.06%.
“But we’re not complacent either way. We are very concerned about wealth destruction, for example in crypto. We hang our heads on the once great FAANG stocks. But we can never stop looking for opportunities,” he added, referring to his acronym for shares in Facebook parent Meta, Amazon, Apple, Netflix and Google parent Alphabet.
Cramer’s comments come after cryptocurrencies saw a sell-off that knocked over $200 billion from the overall market in one day. Bitcoin fell below $26,000 for the first time in over a year.
Ether, the second largest digital currency, fell below $2,000 for the first time in almost a year. The Terra Project’s UST stablecoin lost about 75% of its value on Wednesday before moderating slightly higher, while its sister token Luna lost about 98% of its value over the last week.
Stablecoins are viewed by digital currency investors as safe havens when the market is turbulent, but UST has lost value.
In his analysis of the stock market, Cramer emphasized its unpredictability and noted that Thursday seemed a perfect opportunity for a rally.
“The market should have rebounded strongly today because interest rates have come down and there hasn’t been any really bad news,” he said.
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