Be prepared with cash on hand when market uncertainty sets in

CNBC’s Jim Cramer told investors Tuesday that they shouldn’t rely on optimism as a market strategy, but should still be prepared to act when the market recovers.

“I think you can do really well right now in a balanced portfolio that also has a lot of cash on the sidelines. You want to be ready for when things really get better. It’s just that there’s so much uncertainty, you have to be a little more cautious.” than we’d like, at least in a number of key sectors,” said the “Mad Money” host.

The latest US inflation data revealed that consumer prices in March rose 8.5% from a year earlier, their highest levels since 1981. Stocks fell on Tuesday in response, with the Industrial Average The Dow Jones fell 0.26%, while the S&P 500 fell 0.34%. . The Nasdaq Composite fell 0.30%.

Cramer said that while he doesn’t think investors should lose all hope that the market will recover, he is wary of spreading “false positivity.” He pointed to the Russian invasion of Ukraine, Covid lockdowns in China, and a shortage of semiconductor chips as some of the main culprits for the market’s underperformance.

“When there’s less trouble, you’re leaving the realm of hope and heading into the realm of reasonable odds… I love betting on reasonable odds. That’s why we have so much money ready for the Charitable Trust for us to attack.” when we start to see them,” Cramer said.

“But for now, all we have is hope, and that’s not enough of a game plan,” he added.

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