Jim Cramer is the host of the CNBC series Mad Money, and has previously worked in large companies such as the investment bank Goldman Sachs.
On Thursday, Cramer recommended investors seize the opportunity in the stock market that he believes now presents itself, and believes it is wise to buy shares now. This comes against the background of how he believes the US central bank, the Fed, will conduct monetary policy going forward.
– When the Fed is out of the way, there is a golden opportunity to load up on the stock market. In a recession, the Fed has a good incentive to pause interest rate hikes. This break means you have to buy shares, writes Cramer to CNBC.
BNP-fall
US indices rose on Thursday despite the fact that US gross domestic product fell in the second quarter after falling in the first quarter as well, which technically means the country is in a recession. The key indices on Wall Street also rose sharply on Wednesday.
Cramer acknowledges that some stocks will be negatively affected by higher interest rates. He also says that companies such as Walmart and Target will be able to struggle in a time of high inflation.
– This is an overstock recession, not a layoff recession. This means that one should buy shares if there is no surprising negative news from the Fed, concludes Cramer.
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