Jim Cramer says the stock market is ‘incredibly confusing’ right now

CNBC’s Jim Cramer said on Tuesday that it was normal for investors to have trouble understanding the stock market at this time.

“Every day someone tries to make sense of the larger moves – the big moves, calls for stagflation, calls for the Fed to move – but it’s nearly impossible,” said the host of “Mad Money, “shortly after the top three US stock indexes finished in the red for the third day in a row.

“How can Alphabet lose 49 points when they’ve been pushed hard by a big brokerage?” Cramer said, referring to JPMorgan’s decision to reiterate its overweight rating on parent company Google. “Why have retailers come together if the economy is supposed to be weakening? These are random, theme-less moves… that make you feel like a dope the moment you get involved.”

However, Cramer stressed to viewers his belief that Wall Street is bottoming out after weeks of contested trading. Over the past month, the S&P 500 is down 2.42%, while the tech-rich Nasdaq is down 4.3%. The Dow Jones Industrial Average is the best performing relative, but it is still down 0.66% over the same period.

“So what are you doing? You wait,” Cramer said. “You wait until we get closer to the end of the month, when the market has historically been trending down, then you are preparing to buy stocks gradually on the way down.”

Cramer acknowledged that it is “difficult to tell people to relax”, especially at a time when investors are nervous about supply chain challenges, inflation and the strength of the market. job. These three negatives are relatively new challenges to understand from an investment perspective, he said.

“You just need to know that you’re not alone. In fact, judging by the horrific hedge fund numbers I’ve seen recently, anyone having trouble with this market is actually in the majority. you don’t feel bad if the market makes you feel baffled. It’s incredibly confusing out there. ”