Market sales have reached the "emotional stage" and investors should start scouting opportunities to buy stocks, CNCC's Jim Cramer said Wednesday.
The three major US indices all went down less than 1% during the trading day as traders' confidence in stocks as an asset class, he said. It makes it a good time to get past the basket and restore the market at discounted prices, he said.
"Now that people are very freaking out … I think it's time to start picking up stocks in weakness. It's not cheerleading, it's discipline," said the "Mad Money" host. "So if you have some money on the sidelines, I think you might start putting it to work, but slowly and surely, not with a degree of goodness because it's not justified."
Emotions have overtaken the market, Sa Cramer.
Take Johnson & Johnson: On the first day of a high-profile trial, Oklahoma reported public prosecutors the company to play a role in more than 46,000 opioid-related deaths over a decade. In response, the shares of the pharmaceutical giant went down by 4% during the session.
However, Cramer claimed that Johnson & Johnson was a much smaller contributor to the country's opioid epidemic, including the state of Oklahoma. The "real bad actors" were Purdue Pharma, who immersed how addictive his OxyContin drug was, and Teva, who sells painkillers, he said. The two companies joined public prosecutors for $ 270 million and $ 85 million, respectively, in recent months.
Johnson & Johnson, who involved much less than the aforementioned fabricators, lost about $ 1[ads1]5 billion of market share Wednesday. "Secluded has become ridiculously overblown," Cramer said.
"To the worn and despondent, JNJ is becoming another nightmare," he said. "But for me, the decline here is simply another buying opportunity, although I accept it, there may be several disadvantages from scared investors."
Working day, which fueled nearly $ 10 a Wednesday, suffered a similar overblown fate, Cramer said. The Cloud software company reported a "fantastic" quarter on Tuesday – the best of Cramer's "Cloud Kings" stock concept so far, he said. The company picked up more business with Cisco, Geico, Procter & Gamble, Siemens and Airbus, he noted.
"This recall was completely predictable. The inventory had gone dramatically into the quarter – it was cruising for bruises, even with large numbers," Cramer said. "But today's action sends a chilling message: Even if you shoot the lights out [and] does a wonderful job, it doesn't matter, your warehouse will be sold."
IMPORTANT: Cramer breaks down why investors should start looking for buying opportunities
Information: Cramer's charitable trust owns shares in Cisco and Johnson & Johnson.
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