CNBC’s Jim Cramer offers a list of 12 issues that he believes could help the stock market weather the recent crisis it is experiencing. His advice comes Wednesday as all three US stock indexes are in the red for September. Here are the 12 solutions by cramer:
The labor market must be buoyant
Jim Cramer said the job market must bring us good news. Although Cramer informs that the non-farm payroll report is grim, he added that if we fail to get a large number in a few weeks, it can be concluded that the lack of extended unemployment benefits solves the problem. of the labor shortage.
Read the signs of moderation in inflation
Are you looking for fast news, great deals and market analysis? Sign up for the Invezz newsletter today.
Reading the signs of moderating inflation, CNBC’s Jim Cramer said:
“Any business planning their budget for next year has to assume, for once, that prices may not continue to rise, because right now when you put pen to paper, they all do. “
Coping with the shortage of fleas
According to Cramer, an increase in manufacturing capacity can help industries cope with the semiconductor shortage that many industries, especially the automotive sector, are facing.
Improve the supply chain
Cramer says supply chains largely depend on market sentiment. He said:
“The rise in the price of oil, force majeure for paint ingredients, the interminable wait for appliances or washers or dryers; these shortages freeze the economy. He must unfreeze for business to resume.
Business outlook must be positive
When it comes time to report future financial results, Cramer hopes companies will have developed a positive outlook. In addition, he hopes organizations are hinting that they are looking for light at the end of the dark tunnel.
According to Cramer, opening schools can help the economy. But, not excluding the risks of opening schools, he specifies that parents can return to work when schools are open.
Declining hospitalizations can accelerate market dynamics
According to Cramer, a drop in the number of people hospitalized due to the coronavirus may help the market gain momentum and witness a spike.
Motivate people to travel
There is a decline in the number of air travelers and those looking for hotel accommodation. However, Cramer shares that an increase in air passenger numbers and high hotel occupancy rates are positive signs for the economy.
Peak in bond yields
Regarding bond yields, Cramer said:
“We want higher interest rates caused by a stronger economy, not inflation. Don’t be afraid of higher rates; worry that rates will rise when the economy is not doing well.
IPOs must be slow
Cramer says he wants to see only high quality companies entering the market. According to him, we don’t need the type of supply we know.
Share buybacks must increase
In the context of Microsoft’s announcement of a $ 60 billion buyout and an 11% dividend hike, Cramer said:
“No more buyouts like the Microsoft ones that eliminate excess inventory supply and instill confidence in corporate balance sheets.”
Attention must move away from Washington and Beijing
Stating that Washington and Beijing must remain in the limelight, Cramer noted that regulators’ scrutiny of businesses is a challenge for owner businesses in China. Meanwhile, in the United States, policies and taxes are having an impact on the market.
Invest in Crypto, Stocks, ETFs and more in minutes with our favorite broker,
67% of retail CFDs lose money