CNBC’s Jim Cramer urged investors on Friday to stay positive heading into the week ahead, even as the market begins to cool.
After a surprisingly painless debt ceiling resolution and a strong jobs report, Cramer knows it’s tempting to see the next week as a “Goldilocks” situation, where everything seems to be working as it should. But he reckons that this deadline cannot last more than a week.
“I don’t love a market where everyone is now coming around to our bullish way of thinking because the market is now expanding from the Magnificent Seven,” he said, referring to the seven high-powered technology stocks that have consistently propped up the market this year. “I liked [the market] more yesterday than I do today because it’s higher, and that’s how you have to think.”
On Monday, Cramer will attend Apple’s Worldwide Developers Conference, where new products, ideas and software updates will be on display. He said investors should hold on to Apple shares, which hit a new 52-week high on Friday. Monday will also bring three analyst meetings for three major entities in the healthcare sector: the American Society of Clinical Oncology (ASCO), Moderna and Merck. Tuesday is another big day for pharmaceuticals, with another ASCO-related event coinciding with Bristol-Myers.
Restaurant giant Brinker – which owns popular chains Darden and Chipotle – will also hold its analyst meeting next week, and Cramer predicts great success for the company’s future as food costs begin to come down.
With rumors swirling about China’s efforts to jump-start its economy, Cramer suggests investors keep an eye on Nio, the Chinese car company and major Tesla rival, which he believes could emerge as a big sales opportunity.
Cramer’s bottom line is to remain bullish, as he believes the Fed will not raise interest rates drastically at its next meeting.
“We’re not going to hand over our bullish welcome mat because others are stepping on it,” Cramer said. “Just when we saw and predicted that the market would go from narrow to wide, and when that happens, and everyone is in your boat, it’s time to say goodbye.”