Jim Cramer sees 2 possible 'speed bumps' for stocks. Here's how he is preparing

"Mad Money" host Jim Cramer on Wednesday discussed two possible speed bumps for the stock market and explained to viewers how his charitable investment trust is preparing. Sign up and learn more about the CNBC Investing Club with Jim Cramer https://cnb.cx/3Ei22n4

CNBC’s Jim Cramer said Wall Street may hit a few “speed bumps” before it possibly closes 2021 on a high note, so he’s raising some cash to strategically deploy into potential weakness.

“As long as [Fed Chief] Jay Powell doesn’t threaten us with a series of lockstep rate hikes ... and as long as he recognizes that some of this inflation is indeed transitory ... then I think we’ll get some great buying opportunities, including one last leg down because the much-anticipated Santa Claus rally,” the “Mad Money” host said.

Cramer pointed to two possible events that could spook investors and cause a wave of selling in the near term, creating those aforementioned buying opportunities. The first is Friday’s consumer price index report from the Labor Department, while the second is a dramatic escalation in the situation involving Russia and Ukraine.

After considering both events, Cramer said the decision was made to trim some of his charitable trust’s most successful positions, so it has ample dry powder. On Tuesday, in particular, the investment trust sold 25 shares of Estee Lauder and 200 shares of Marvell Technology.

Cramer stressed that he didn’t sell those shares because was “truly worried” about Friday’s CPI report showing much-hotter-than-expected inflation or geopolitical tensions. The trust “took some profits because they were right to take,” he said.

“I’m an optimist. I’ve watched the Dow go from 1,000 to 35,000 in the course of my professional lifetime,” Cramer said. “I am concerned, but I am not worried. We raised some cash because I anticipate panic when other people get worried and stoke fear in the media.”

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-n...
 
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-cred...

#CNBC
#CNBCTV