Cramer sees positives for investors after sell-off on Covid fears: ‘The carnage is reversible’

CNBC’s Jim Cramer mentioned he sees positives for investors after steep market declines Wednesday as Wall Street grew additional involved concerning the coronavirus pandemic.

“I recognize the carnage, but I do think the carnage is reversible,” Cramer mentioned Wednesday on “Closing Bell,” after the Dow Jones Industrial Average gave up 943 factors, or 3.4%, in its worst day since June. The benchmark S&P 500 declined 3.5%, and the tech-heavy Nasdaq Composite fell 3.7%.

“It’s just that you do need to get past the election, and you have to start accepting the fact that because people don’t wear masks, they don’t practice social distancing, we don’t do contact tracing … that we’re going to have a lot of case loads,” Cramer mentioned.

The “Mad Money” host mentioned by recognizing the shortcomings of the U.S. response to the pandemic, investors will be capable of spot particular person alternatives out there the place there is upside. He pointed to the sturdy earnings report from Ford Motor, which illustrates the power within the auto market, and General Electric.

“You get a one-off like Ford and a one-off like GE, and you get a couple more one-offs. Next thing you know you’re saying, ‘Why am I just selling everything?'” he mentioned.

Cramer mentioned the coronavirus case rely within the United States is certain to rise within the coming days. That echoes feedback made earlier Wednesday by former Food and Drug Commissioner Dr. Scott Gottlieb, who mentioned that “things are going to get worse.”

“[Investors] know, and we have to build in the Covid case load,” Cramer mentioned. “We have to build in the restaurant shutdowns. We have to build in who the heck knows with the election? At a certain point, it gets built in.”

“And then we say, ‘Well listen, I’m not inured to Covid. I don’t want anyone to have it. I don’t want to catch it,'” he added. “But at a certain point, how many times are you going to discount Covid?”

Wednesday’s sell-off was broad, with all 11 S&P 500 sectors ending within the purple, led by know-how’s 4.33% decline. However, Cramer mentioned that sort of market motion lays the inspiration for alternatives. “I’m not saying it’s artificial. But I am saying good news will create an upswing.”

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