CNBC’s Jim Cramer said that Wall Street could hit some “speed bumps” before possibly ending 2021 on a high note, so he is raising money to strategically distribute to potential weaknesses.
“As long as [Fed Chief] Jay Powell does not threaten us with a series of interest rate hikes … and as long as he realizes that some of this inflation is actually temporary … then I think we will have some good buying opportunities, including a final leg down due to the much anticipated the Santa Claus meeting, “said the”[ads1]; Mad Money “host.
Cramer pointed to two possible events that could scare investors and cause a sales wave in the short term, creating the aforementioned buying opportunities. The first is Friday’s consumer price index report from the Ministry of Labor, while the second is a dramatic escalation in the situation involving Russia and Ukraine.
After considering both incidents, Cramer said the decision was made to trim some of his most successful positions in his charitable trust, so that it has plenty of dry powder. On Tuesday in particular, the investment fund sold 25 shares in Estee Lauder and 200 shares in Marvell Technology.
Cramer stressed that he did not sell these shares because he was “really worried” about Friday’s CPI report, which shows much warmer-than-expected inflation or geopolitical tensions. The trust “took some profit because they were right to take,” he said.
“I’m optimistic. I’ve seen the Dow go from 1,000 to 35,000 in my professional life,” Cramer said. “I’m worried, but I’m not worried. We raised money because I expect panic when other people get worried and arouse fear in the media.”
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