Jim Cramer Advises Investors To 'Hunker Down' Amid Ongoing Stock Market Rout: 'We'll Get Lower Prices'

In a recent episode of “Mad Money,” Jim Cramer advised investors to remain patient and wait for lower stock prices amidst the recent market downturn.

What Happened: On Tuesday, the S&P 500 and Dow Jones Industrial Average experienced their worst sessions in nearly a month, dropping by 0.72% and 1%, respectively. This marked the second consecutive day of losses for these indices, CNBC reported on Tuesday.

The Nasdaq Composite, which had a slight increase on Monday, also fell by 0.95%. The decline is attributed to the recent surge in oil prices and increased bond yields, both of which are linked to robust economic data.

Cramer, however, believes that these declines could present an opportunity for investors to purchase quality stocks at a discount.

He stated, “After a day like today, all you can do is patiently hunker down and wait for lower prices. Somehow, I think we’ll get them.”

See Also: Dogecoin Set to Surge Over 200%, Says Crypto Analyst: ‘It’s Going To Do Something Insane This Cycle’

He also noted that the market has been on a steady rise since late October, and a pullback was inevitable. Despite the recent factors contributing to the market’s decline, Cramer is not overly concerned about the long-term implications for stocks.

“Yes, we’ve got higher rates, but the impact on the economy is not profound,” Cramer said.

“Meanwhile, the impact on the market is what you’d usually expect: People pay less for stocks when rates go up. We’ve just kind of forgotten that happens.”

Why It Matters: The recent market downturn is a continuation of the trend from Monday, which saw the S&P 500 and Nasdaq Composite trading lower. This was attributed to concerns about the economy’s health and the future of interest rates, as indicated by strong economic data and scheduled Fed speeches.

Meanwhile, last week, Goldman Sachs said the S&P 500 could witness a further 15% surge by the end of 2024, driven by the ongoing exceptional performance of mega-cap tech stocks.

While some experts, like Apollo's Chief Economist, have warned that the current AI bubble is larger than the 1990s tech bubble. Others like Ray Dalio believe the market is not in a bubble, citing various indicators.

Read Next: Bitcoin, Ethereum, Dogecoin Dip In Market Correction: Analyst Expects All-Time Highs For King Crypto As Halving Nears

Photo: Courtesy of Scott Beale on Flickr