After Friday’s sell-off, Cramer needed to emphasize why investors must remain vigilant in this new, much more volatile stock market.
“The key is to recognize that you’re only human. Your sense of timing is going to be fallible,” he said. “That’s especially true with this current White House and a Federal Reserve that’s now tightening. You can’t presume anything other than a good chance that when you buy, you’re going to be wrong.”
Cramer pointed to the escalating trade dilemma with China as one of his chief concerns, particularly if retaliation is paired with another errant tweet from President Donald Trump.
“In the end, you want panic working for you, not against you,” Cramer said.
“The mercurial nature of the president’s negotiating style, coupled with his determination to tame China even if it means hurting the earnings per share of our exporters and also, of course, hurting the spending power of our consumers, well, it is a recipe for daily panic,” he continued. “That translates into lower prices, which is why you need to keep some cash available at all times [to] take advantage.”
With that in mind, Cramer turned to his game plan for the week, which will kick off the market’s next earnings season.
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