Jim Cramer, otherwise known as the ‘stock guru,’ has weighed in how the latest cryptocurrency market correction can affect the stock markets. Cramer thinks this contingency will benefit stock markets, with some investors taking profit and moving them to less volatile, less transient investments. But some volatile stocks also felt the correction in crypto, now that some tech shares are more correlated than ever.
Jim Cramer, the host of CNBC’s Mad Money, and one of the most recognizable stock gurus stated the current correction the cryptocurrency economy experienced recently could benefit the stock market. According to him, this shakedown can cleanse the market from speculators, driving serious traders and investors to more value-driven stocks. Cramer stated:
This speculative meltdown can temporarily weigh on the entire market, sure, but once the speculators get shaken out, I’m betting it’s a win for the Dow and definitely the S&P
Cramer criticized investors who really believe in this kind of asset in the long term, observing this profound correction as a reality check. He put in doubt the real value of these assets, stressing that:
The people who still have conviction in assets like the Woodstocks or cryptocurrencies or bogus non-fungible tokens or the SPAC-and-scams, they have no discipline whatsoever.
Cramer then went on to give advice on how to profit during market corrections. He recommended traders and investors they should dump a good part of their cryptocurrency holdings and NFT’s for less volatile, tangible investments, like industrial stocks, minerals stocks, or just plain consumer product companies with good dividends.
Cramer is known for having a critical approach to the real value that cryptocurrencies offer. However, he doesn’t criticize speculating with cryptocurrencies, as long as they are treated as such: speculative assets. Cramer stated last month he had sold some of his bitcoin to pay for his house mortgage, creating a critical reaction in the cryptocurrency community. At the time, he declared:
“From the chart, I may be the only natural seller, but it was so great to pay off a mortgage. It was like, kind of, phony money paying for real money,”
He also declared this month he had sold half of his ethereum (ETH) to buy an electric Hummer, stressing to viewers at that time about the relevance of taking profits on stocks and cryptocurrencies owned.
What do you think about Cramer’s take on the last market correction? Tell us in the comments section below.