Jim Cramer warns stock market may ‘give up some gains’

Jim Cramer, host of Mad Money on CNBC, warns that investors may lose some gains if the market declines significantly.

Despite this, he remains optimistic about a market rebound and advises investors to maintain a long-term perspective.

Cramer says recent market volatility reflects trading action—especially zero-day options. He tells long-holders that a recovery will come.

In a YouTube video, he asked investors to hold their ground even as prices dropped, adding that panicking and selling typically led to missed opportunities. He cranked up the memory of the late Mark Haines, the legendary CNBC anchor who infamously bottom-called the market in 2009 amid the financial crisis. 

Cramer argues that investing during down markets at correction lows can yield big returns, and people shouldn’t make knee-jerk decisions based on their reaction to jumps or drops in the short term.

Cramer says the market will rebound soon

Recent market downturns have been fueled by several macroeconomic factors, including the Federal Reserve’s interest rate policies, inflationary pressures, and geopolitical uncertainty. The slowdown has hit major indices such as the Nasdaq and S&P 500 hard, with technology stocks particularly suffering.

But Cramer thinks the good names will bounce back despite the hurdles. He noted that the market dropped in 2020 following the COVID-19 crash, then quickly recovered.

On Monday’s “Squawk on the Street,” Cramer discussed the brutal third-day crash and estimated the S&P 500 had declined by approximately $4 trillion in value since the end of the bull market in the wake of the election. He points to a general fear of recession that is causing many investors to abandon ship.

And when Cramer was asked whether he was worried about a recession, he replied, “You bet I am. I don’t need a recession, let alone an artificial one. I don’t want to feel anxious about my job. Everybody’s job.” He pointed to tariffs on imports as a source of economic uncertainty, implying that the federal government could do it differently even if the U.S. has reasonable grounds to want fairer trade deals.

Cramer warns against hurting small businesses

Cramer also addressed a fresh report from the National Federation of Independent Business (NFIB) that showed more pessimism among the small business sector in February. He referred to small businesses as the backbone of the economy and warned against policies that might hurt them. “These are the people who hire the base, and they are base. And the base is the best in the world,” he said.

Cramer also commented on Elon Musk’s AI firm, xAI, and its Grok AI model in comments beyond the markets. He was hopeful about Grok and suggested Musk could shake up the segment with AI moves.

Cramer’s overall message hasn’t changed: Don’t make decisions out of fear, and invest for the long term. Fear can grip people during market drops, but past market history shows that staying in high-quality stocks during turbulent times can achieve good returns. He recommends investors remain calm and not make knee-jerk reactions when the markets are roiling.

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