Investors were warned by Jim Cramer of CNBC on Wednesday that while bulls and bears profit, hogs are butchered. While the Federal Reserve considers its next move, Cramer advised cutting some hot stocks and keeping money in reserve.
“It’s OK to take something off the table after a big run,” he stated. “You don’t sell everything unless there’s something fundamentally wrong with the company or the entire economy right now, and neither’s the case.”
For the CNBC Charitable Trust, Cramer cut stock from Facebook parent Meta, AMD, and Costco since he’d seen such huge profits, especially in the latter two. These rates were getting “piggish,” and Cramer believed it was time to “ring the register.”
“I think we’re currently in no man’s land though — not high enough to justify making more sales, but certainly not low enough to justify buying anything, because I want to wait for a better opportunity,” Cramer said, adding that he needs a strong catalyst to purchase new stock.
Cramer also said he thinks the downrise in the CBOE Volatility Index — also called the market’s fear gauge — reveals that many investors are becoming dissatisfied, and it doesn’t help, he added, that the Fed continues to send out conflicting signals. Investors should stop swinging at every pitch, in Cramer’s opinion, and instead keep their bats on their shoulders.
“I just told you what we’re doing for the trust: waiting,” Cramer stated. “It’s often the hardest thing to do, but many times the hardest thing to do is also the best way to try to make a lot of money.”