Jim Cramer sees the current descent at the stock markets as artificially generated – a decline that has nothing to do with the economic strength of the companies. Parallels to the 2011 euro crisis are unmistakable for him.
• Jim Cramer sees market weakness as “artificial created”
• Parallels to Euro crisis in 2011
• US policy as a risk
Jim Cramer warns of homemade stock market weakness
In his CNBC show “Mad Money”, Jim Cramer recently commented on the current situation in the stock markets. Against this background, he in particular shared his assessment of the associated weakness phase, which in his opinion did not arise naturally. While the S&P 500 has lost more than eight percent in value since the beginning of the year, the Dow Jones is almost seven percent in the minus. Meanwhile, the Nasdaq Composite has lost more than 13 percent (as of April 23, 2025).
The current crisis reminds him of the declines in 2011, which due to the financial crisis in the Euro zone were triggered. At that time, debt problems in Europe had shaken the stock exchanges worldwide. “Just like 2011, it is an artificially created crisis – something that can be created by human hands and reversed with a stroke. I think that means that it will pass, but not before the market tests lower levels,” said Cramer to CNBC.
Cramer sees the problem in the USA itself
During the 2011 euro crisis, the announcement of the then ECB boss Mario Draghi, “to do everything” to save the euro, brought the turning point. At that time, the intervention of the central bank calmed down the markets, after positive corporate gains had hardly contributed to recovery. The same can be observed at the moment: A political signal could also make relief in the current situation – but the opposite is currently the case. According to Cramer, the problem is especially in the USA – and less in the fundamental data of the companies. The stock market expert emphasizes that these posted strong numbers, but the share prices continued.
In addition to persistent discussions about US tariffs and geopolitical tensions, Cramer sees primarily domestic risks: for example, Donald Trump’s criticism of the fed chairman Jerome Powell and the impending dispute over the debt limit shaked the trust of the investors. Cramer even warns of a possible downgrading of the US loan – as in 2011.
“In short: we have to get used to a market that falls every morning, because profits no longer play in this environment. It will be the tariffs and the discussions about the dismissal of Jay Powell, which will shape this time,” predicted Cramer on his CNBC broadcast.
If the stock exchange connoisseur is concerned, investors must be prepared for further setbacks – even if, in his view, it will ultimately pass the departure.
Editor finance.net