TBEN’s Jim Cramer advised investors on Wednesday to block the bears in the market and use their missteps to bolster their own portfolios.
“Their misselling creates opportunities for you to buy the dips. You must have a belief that the sellers are wrong and you are right. You must believe your opinion, not the opinion the tape gives you – the bears give you give,” he said.
Shares rose on Wednesday after Federal Reserve Chairman Jerome Powell said in a press conference following the central bank’s meeting in February that inflation had begun to cool, though he did not signal a pause in rate hikes anytime soon.
The market’s gains reversed previous declines triggered by a quarter-point rate hike. Cramer said that while the sale would have made sense last year, when inflation was still skyrocketing and the central bank aggressively hiked rates, a bearish trading approach no longer works.
“It doesn’t make sense anymore if the Fed says the rate hikes are working and we’re pretty far into the tightening cycle, even though they’re still seeing some wage inflation,” he said.
Cramer also reiterated his position that the market is in bull mode — meaning that when market bears become afraid to sell, investors should jump at the opportunity to buy.
“Those who continue to fight the bull, as they did today, think they are in a bear market and are being trampled. Today was a real trampler, and the bears – they still don’t know what hit them,” he said. .
