On Tuesday, Jim Cramer of CNBC encouraged traders to concentrate on looking for companies with solid products and long-term potential when trading in the stock market.
According to Cramer, day-to-day stock movements can be puzzling and sometimes have little value. You are more likely to maintain your position when you invest in a specific business that can make money in a variety of economic conditions, he claimed.
“Put simply, most people don’t trust the market anymore. They don’t trust CEOs. They don’t trust individual companies. There is endless skepticism and little sincere belief,” Cramer said. “A lot of it comes down to the fact that the day-to-day action rarely makes much sense—so much trading, so much trying to game things, stocks going up or down for reasons that have nothing to do with the underlying companies.”
Cramer mentioned the beneficial example of semiconductor maker Nvidia, stating he’s witnessed its capacity for years. He even gave the business’ name to his deceased dog. Nvidia stock has had great success largely because of the fact that its chips are crucial for various generative artificial intelligence programs. They might completely transform the industrial industry, says Cramer.
Cramer also pointed to drugmaker Eli Lilly, which rose 15% on Tuesday after reporting a successful quarter and positive prospects for its diabetes treatment drug, Mounjaro.
The drug, in Cramer’s opinion, may also be ground-breaking. Regulators have only approved it to treat diabetes so far, but they may soon approve it to treat obesity as well.
“You can potentially make big money by keeping your eyes and ears open, as long as you suspend your corrosive, sardonic, skeptical, overly critical self and accept the reality that sometimes companies invent amazing things that generate hundreds of billions or even trillions of dollars of wealth,” Cramer said. “You can grab some of that wealth, you can claim your fair share, but only if you are willing to believe.”
