Jim Cramer advises investors to buy, not sell, after Tuesday’s sale
After a tough day of trading on Wall Street, CNBC’s Jim Cramer said the market gives investors the opportunity to find stocks that are great buys.
“Even though we had a brutal sell today, we are still in one of the biggest second chance markets I have ever seen, as you have seen with the manufacturers between mid-morning and the end of the day, “the”Crazy money“said the host.
“We’ve seen this happen countless times, folks, but it’s very hard for people to remember that you’re supposed to buy, not sell, when stocks are crashing,” Cramer said.
Cramer pointed to trading drug stocks to argue against the sale in the face of a liquidation. Actions of Merck, Bristol-Myers Squibb and Eli lilly, he noted, rebounded after missing estimates from their quarterly earnings reports last week.
“I think Eli Lilly, which we own for the charitable trust… represents real value compared to the rest of the market,” he said. “Lilly makes her fortune and when her stock got smashed on a bad tape you have to buy her. Apparently a lot of fund managers agree because she ended up rallying today.”
Eli Lilly stock closed at $ 188.20 on Tuesday after rising 1.2%. Cramer suggested that Eli Lilly’s decision on Monday to authorize a $ 5 billion buyout could be a turning point for the stock, which is down more than 11% from the end of January.
Disclosure: Cramer Charitable Trust owns shares of Eli Lilly.