Timing is everything: Jim Cramer warns investors not to miss the stock-buying window

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• Key interest rate rises
• Recession Ahead?
• Correct time window for stock purchases

Inflation, interest rates and recession weigh on the markets

In the current environment of geopolitical tensions, high inflation rates, rising key interest rates and fears of a recession, many investors will find it difficult to find a suitable investment strategy. With rising interest rates, tech stocks that were previously valued in the low-interest environment and climbed from one record high to the next, but whose price targets are no longer considered realistic, have often fallen under the wheels. This particularly affects growth stocks where the companies behind them cannot yet report a profit. Although it can pay off in crisis situations to wait and see and neither rush to buy more nor tend to panic sell, according to stock market expert Jim Cramer, the path to success lies at the right time.

Between rate hikes and recession: time window to buy stocks

This appears to have come as soon as the US Federal Reserve tightened its current position monetary policy completed. Only last week did the monetary authorities raise the key interest rate by 0.75 percentage points to between 2.25 and 2.50 percent in order to get the high inflation under control. This is the fourth rate hike this year. However, Fed Chairman Jerome Powell has already given an outlook on the next interest rate meeting in autumn: Then the next interest rate hike is in the house. However, if the key interest rate is not touched for the time being – for example because a recession is setting in – the opportunity could have come for investors, according to the “Mad Money” moderator in his program on the US broadcaster “CNBC”. “When the Fed dodges, you have a real window to jump through. … When a recession comes, the Fed has common sense not to hike rates anymore,” Cramer said. “And that pause means you have to buy stocks.”

Investors should not miss the right moment

According to the US moderator, investors should lie in wait and strike as soon as the right time has come – which shouldn’t be too long. So he advises investors to enter the market before the window closes again. “I think that window is finally here and you don’t want to close it on yourself,” he said. Waiting cautiously is therefore not worthwhile.

There is no way around stocks

According to Cramer, the Fed’s policy has caused the shares of some companies to stumble – including construction companies, which are struggling with high interest rates, but also large retail chains such as Target and Walmart, which are stuck with high inventories and thus with higher ones have to calculate costs. Nevertheless, equities are the right way to go in a recession, the expert pointed out. “It’s an inventory recession, not a layoff recession, and that means you can buy stocks when the Fed and/or Washington have nothing bad to report,” Cramer said on his show.

recession-but an inventory recession

– Jim Cramer (@jimcramer) July 28, 2022

He also confirmed this view in short form on the short message service Twitter: “Recession – but a warehouse recession” can be read on the profile of the TV size.

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