CNBC’s Jim Cramer told investors on Tuesday that the market is in bull mode, so the decline represents an opportunity to buy on the decline.
“If we are in a bull market, and I think we are, then you have to prepare yourself,” he said. “We now have to be prepared for days of decline because in a bull market, they are buying opportunities.”
Stocks Rose On Tuesday, the S&P 500 notched up its best January performance since 2019 on strong corporate earnings and lower-than-expected inflation data. The Nasdaq Composite saw its best January since 2001.
Cramer said the market’s profit potential on the back of a strong earnings report shows it has more room to run.
“A bear market goes in the opposite direction – the stock opens, then closes and you feel humiliated. Good earnings mean nothing but a price target cut,” he said.
The market rallied a day after stocks fell at the beginning of the week. Cramer said Tuesday’s turnaround shows that high-quality names will eventually make a comeback in the current market.
“Even if it doesn’t reverse today, well, there’s always tomorrow, so don’t think about betting against it,” he said.
