CNBC’s Jim Cramer on Thursday laid out his dos and don’ts for investing within the present market environment.
“If you accept your predicament and you follow these rules, you’ll have a chance to prosper in this brand new market. But if you try to cling to what worked last year,” the “Mad Money” host mentioned, “I think you’ll get blown out just like the people who tried to stick with dreamer internet stocks during the dotcom collapse.”
The Dow Jones Industrial Average climbed virtually 200 factors increased on Thursday to 32,619.48. The S&P 500 moved up 0.52% to three,909.52, and the Nasdaq Composite gained 0.12% to shut at 12,977.68.
This is a tricky scenario, regardless of the optimistic day for shares, Cramer mentioned, with the market on a weekslong downtrend. Whenever the market rolls over, he mentioned, traders undergo the 5 levels of grief: denial, anger, bargaining, melancholy and lastly acceptance.
“We’ve now made it … to depression, even as the averages rebounded nicely this afternoon,” he mentioned. “This is when lots of investors typically tend to throw up their hands and give up on the entire asset class.”
Below are his suggestions to assist retail traders climate the present scenario: