Jim Cramer to Investors: Buy Gold, Don't Dump Your Stocks Now
By F McGuire | Friday, 21 December 2018 08:46 AM
Investment guru Jim Cramer tells investors there’s a bull market in gold and you’d be wise to buy the precious metal right now.
The “Mad Money” host advised on CNBC that selling stocks now may prove to be a costly mistake.
Cramer says Federal Reserve Chairman Jerome Powell seemed to ignore “serious” weaknesses in the U.S. economy and hiked rates anyway.
“I have a better read on the economy than the Fed and I know they’re not going to listen to me,” Cramer said.
“I feel powerless, just like 2007, when I ranted that the Fed needed to start easing aggressively in order to stave off a financial catastrophe,” Cramer said.
He also recommended two sliding stocks that he said were “perfect harbingers of a softer economy”: Carnival Corp. and Accenture.
“If you’re buying stocks here, ... you’re making a bet that Jerome Powell will learn what I know already: that the economy’s downshifted enough ... that he doesn’t need to move, [that] he knows that the next rate hike will be real bad for Main Street,” Cramer said.
Cramer also suggested buying into the “bull market” in gold. He liked RandGold, a mining stock, and an exchange-traded fund mirroring the price of gold called the GLD.
While he confessed “the odds simply do not favor stockholders,” Cramer predicted that “when Jay Powell recognizes that he’s wrong, ... the market will come roaring back.”
“Sooner or later, the weakness will be undeniable and he’ll have to change course, which is a reason why you can own stocks,” he said. “I’m confident in my judgment, so confident that I’m sure Powell will have to reverse course, maybe in the next four months. When he does, you’ll regret selling because the market will rebound so fast.”
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