CNBC’s Jim Cramer said Monday investors need to remain calm and trust in drug companies to develop any additional solutions needed to beat back the newly detected Covid omicron variant.
“When I say trust the science, that doesn’t necessarily mean … buy the stock market. But it most certainly means do not panic,” the “Mad Money” host said.
“Those who panicked and sold into the maelstrom” that was Friday’s sell-off are likely already regretting it, he added, shortly after the S&P 500 rose 1.3% on Monday.
Cramer acknowledged the omicron variant may have economic consequences and stressed the need for investors to prepare for multiple scenarios, including a slowdown that favors stocks such as Amazon.
However, at this point, Cramer said there’s no reason to make investment decisions out of fear, which he contended took place Friday when the Dow Jones Industrial Average posted its worse session since October 2020.
In addition to his faith in vaccine makers, Cramer also expressed confidence in Federal Reserve Chairman Jerome Powell to monitor the variant’s impact on the economy and to steer monetary policy accordingly.
“The last two sessions were yet another demonstration that panic is not a strategy for you. It’s not a strategy at all,” Cramer said. “Am I worried about the omicron variant? Sure, I’m not an idiot, but we’ve seen this movie before and we know how it ends.”
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