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Noted TV personality and author Jim Cramer reportedly said on Monday that the worst may be behind after the three-day sell-off induced by President Donald Trump’s tariffs and noted that the markets may be oversold.
In a recent episode of Mad Money, the CNBC host noted that the sell-off is a temporary phenomenon and has nothing to do with concerns of systemic rot in American institutions across finance and other sectors.
“We agreed that we have to take the financial crisis scenario off the table. We don’t believe that the whole economic system is in jeopardy,” Cramer said, adding that this won’t be the “Global Financial Crisis 2.0.”
“The worst may, indeed, be behind us.”
However, the former hedge fund manager also explained why buying at current levels may be a difficult task.
“What a tough moment. We are so oversold, and the futures are so high that buying here is a very difficult chore. We have been there before, and the market can be a coiled spring without news,” he said in a post on social media platform X on Tuesday.
He also wondered if another 50% levy on China “doesn’t matter” to stocks.
“We succeeded in not selling into yesterday's panic. But can we really buy into today's euphoria?” he asked in a follow-up post.
The Dow Jones index surged over 1.4% in Tuesday’s morning trade but lost some of its gains later. The SPDR S&P 500 ETF Trust (SPY), which mirrors the S&P 500 index, was up 0.3%.
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