Sunday, November 28, 2021
Home > BUSINESS > Jim Cramer shows 12 ways stocks can shake off September fights

Jim Cramer shows 12 ways stocks can shake off September fights

Jim Cramer shows 12 ways stocks can shake off September fights

CNBC’s Jim Cramer on Wednesday unveiled a long list of issues he believes need to be addressed in order for the stock market to overcome the recent malaise and build meaningful momentum.

“We not only need a handful of these positive things before I can begin to feel better about this situation, we need almost all of them. If we get them, the market will soar, but if we do not, so the next few weeks could be as brutal as advertised, “said host Mad Money.

Cramer has said he is currently “neutral” in the market during a historically tough month for stocks. All three major U.S. stock indices are in the red for September, despite ending higher higher on Wednesday.

Here is Cramer’s recipe for how market sentiment and equities can go significantly higher:

1. Positive job picture

“We need some good news on the employment front. August’s not-so-hot not-farm payroll report has dogged us ever since we saw it, right?” Said Cramer. “If we can get a large number in a few weeks, we can conclude that the lack of extended unemployment benefits solves the shortage of labor,” he added, warning that it is not necessarily a “safe thing”.

2. Signs of inflation temperature

“Any business planning its budget for next year must, for once, assume that prices may not keep rising, because they all do right now when you put the pen to paper,” Cramer said. “At this rate, these companies may not be able to afford to expand,” he added.

Chip shortages must decrease

Lack of semiconductors has disrupted crucial industries such as Cars for several months. However, Cramer said, “until we get more production capacity, the shortage can continue.”

Supply chains need to be improved

The Qianwan container terminal in Shandong Port Group is seen in Qingdao Free Trade Zone in Qingdao, Eastern China’s Shandong Province, August 7, 2021.

Costfoto | Barcroft Media | Getty Images

In addition to the chip crisis, Cramer said supply chain problems more broadly will continue to weigh on market sentiment because they hamper economic activity.

“Rising oil costs, force majeure for paint ingredients, the endless wait for fixtures or washers or dryers. These shortcomings are freezing the economy. It must thaw if the business is going to rise,” Cramer said.

Similarly, Cramer said signs that congestion in ports is easing would help the market.

5. Corporate outlook

As the next round of earnings reports is released, Cramer said he will see companies stating that they see “lights at the end of the tunnel” as it relates to supply that can meet consumer demand. “It was a good problem in the beginning … It doesn’t cut it anymore,” he said.

Similarly, executives who say they see commodity prices retreating would be a positive surprise for Wall Street, according to Cramer.

6. Schools must remain open

“The stock market needs … kindergarten through 12th grade schools to actually open and then stay open,” Cramer said. While acknowledging that there may be covid risks associated with it, he said he is simply saying it can help the economy because it allows parents to return to work more freely.

“Do you want to solve the shortage of labor? … Open the schools,” he said.

7. A decrease in Covid hospital admissions

“Maybe it’s happening because employers are starting to demand vaccinations, maybe the delta variant is infecting so many people that we finally have an appearance of herd immunity,” Cramer said. “A definite drop in hospital admissions could send this market to excess.”

8. Encouraging signs of travel

Travelers are waiting to drop off their luggage at the American Airlines counter at Miami International Airport before starting the Labor Day weekend on September 3, 2021 in Miami, Florida.

Joe Raedle | Getty Images

Many investors become concerned when there is a drop in air passengers, Cramer said, so a pickup in air travel – and hotel occupancy rate as well – would send positive economic signals.

9. An increase in bond yields

“We want rising interest rates caused by a stronger economy, not inflation. Fear not of higher interest rates; fear of increases when the economy is not doing well,” Cramer said.

10. A slowdown in stock market listings

Cramer said he only wants to see high-quality companies hitting public markets, and worries that “all IPOs and SPACs are flooding this market with excess supply that we do not need.”

11. Increase in share buybacks

“More buybacks like Microsoft’s are clearing up the excess inventory and inspiring confidence in corporate balance,” Cramer said. The tech giant announced a $ 60 billion buyback earlier in the day, along with a 11% increase in dividends.

12. Less focus on DC and China

Politicians in Washington and Beijing “need to get off the radar screen,” Cramer said. In China, regulators’ continued corporate controls make Chinese companies difficult to own, Cramer said, while discussion of higher capital gains taxes and other U.S. policies could “make the market shake.”

“Before they think about raising taxes, they should do something useful like raise the debt ceiling,” Cramer said.

.

Leave a Reply

Your email address will not be published. Required fields are marked *