Jim Cramer Identifies 4 Hurdles Facing Investors Today: 'Everybody Suddenly Wants To Sell In May And Go Away'

Zinger Key Points
  • It remains unclear whether the central bank will take a breather from its aggressive monetary policy, Cramer said.
  • The market expert said another thing to observe is the upcoming employment numbers.
  • Cramer expects that the looming debt ceiling crisis would be resolved in due course.

Market commentator Jim Cramer reportedly said there are four main hurdles all investors have to navigate in current times but noted that those who do so effectively will witness a payoff.

What Happened: "If it were just one hurdle, we'd be fine," Cramer said, according to a CNBC report. "But with four of them, everybody suddenly wants to sell in May and go away," he added.

Read Next: How To Invest In Startups

One of the hurdles that Cramer is talking about is Wednesday's Federal Reserve policy announcement. According to the CME FedWatch Tool, traders are factoring-in an 89% probability of a 25 basis points hike. It remains unclear whether the central bank will take a breather from its aggressive monetary policy, Cramer said.

Another thing to observe is the upcoming employment numbers from the Labor Department that need to remain steady or witness a drop for the central bank to stop tightening for good, Cramer said.

Major Wall Street indices closed over 1% lower on Tuesday as concerns over a banking crisis once again came to the fore and market participants maintained caution ahead of the Fed decision.

Bank shares declined and the SPDR S&P Regional Banking ETF KRE dropped over 6%. The SPDR S&P 500 ETF Trust SPY closed 1.12% lower while the Invesco QQQ Trust Series 1 QQQ lost 0.87% on Tuesday.

Debt Ceiling: Cramer expects the looming debt ceiling crisis to be resolved in due course but the markets may witness some hangover over the next couple of weeks. The White House on Tuesday once again reiterated that President Joe Biden will not negotiate over the default during his meeting with the four top congressional leaders next week.

And finally, investors and traders are waiting for Apple Inc AAPL earnings that are scheduled to be announced on Thursday. The company's stock has moved dramatically and the quarter will likely need to be stellar for the shares to keep moving the same way, Cramer said.

"It's not a bear market, just an interlude, and you have to recognize these four hurdles are a gauntlet, a real gauntlet, that must be traversed," Cramer stated according to the report.

Read Next: Former Dallas Fed President Robert Kaplan Explains Why The Central Bank Needs To Pause Rate Hikes

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!