December 7, 2022

Jim Kramer's playbook on investing during geopolitical uncertainty

Jim Kramer’s playbook on investing during geopolitical uncertainty

CNBC Jim Cramer On Tuesday, he detailed his investment style for dealing with moments of geopolitical uncertainty, with the outbreak of conflict between Russia and Ukraine.

Concerns about escalating Russian aggression against Ukraine have taken a toll on Wall Street in recent days, including… Tuesday’s broad dips who saw the Standard & Poor’s 500 The close is in the retracement area, which is defined as more than 10% below its recent high.

“When you get a sell-off due to geopolitics, you have new rules. You have to be prepared to make some buying unless you think the event in question could be disastrous.” “mad money” said the host. “I don’t think it will be, and if something really goes awry, or for heaven’s sake, if there’s a nuclear war…I guarantee the last thing you’ll worry about is your wallet.”

Kramer said it’s hard to predict what Russian President Vladimir Putin will do next Sending troops to the separatist regions of eastern Ukraine on Monday. He stressed that it is a terrible humanitarian situation.

For investors, Kramer said it’s important to keep pre-set price levels in mind for stocks. Then, if they get to that point, investors can be ready to buy at a more attractive level, Cramer said.

Kramer pointed out Walmart, a stock owned by his charitable fund, to make his point. When the retail giant released Strong profits and directions Last week, he said the stock was at about $133 a share. Tuesday was lower as part of the overall weakness, but shares are still at around $136 per share.

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That price “isn’t low enough to lower our cost basis for the trust. You always want to buy cheaper stuff so you can lower your foundation. That’s good portfolio management,” Kramer said, explaining that he thinks it’s not worth being too aggressive given the high skepticism of the scientist.

“But you have to understand that you are now getting a chance to buy some high-quality stocks well below the 52-week highs and at some levels that are really cheap,” he said. “They could get cheaper as the situation in Ukraine develops.”

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