Jim Cramer says we are in a bull market, so buy on the dip
TBEN’s Jim Cramer told investors Tuesday that the market is in bull mode, so declines represent opportunities to buy during a dip.
“If we’re in a bull market, and I think we are, you have to prepare yourself,” he said, adding: “We have to prepare for the bad days now, because in a bull market they buy opportunities.”
Stocks rose on Tuesday, with the S&P 500 posting its best January performance since 2019 on strong corporate earnings and softer-than-expected inflation data. The Nasdaq Composite had its best January since 2001.
Cramer said the market’s ability to gain thanks to strong earnings reports suggests there is more room to run.
“Bear market goes the opposite way – stocks open, then get beaten up and you feel humiliated. Good earnings mean nothing but price target cuts,” he said.
The market’s gains come a day after shares fell to start the week. Cramer said Tuesday’s turnaround shows that high-quality names will eventually recover in today’s market.
“Even if it doesn’t reverse today, well, there’s always tomorrow, so don’t even think about betting against it,” he said.