Cramer sees constructive outcomes for traders after the Covid fears are offered off: “The carnage is reversible.”
CNBC’s Jim Cramer said he saw positive results for investors after the market fell sharply on Wednesday as Wall Street grew further concerned about the coronavirus pandemic.
“I see the carnage, but I think the carnage is reversible,” Cramer said on Closing Bell Wednesday after the Dow Jones Industrial Average dropped 943 points, or 3.4%, on its worst day since June. The benchmark S&P 500 index was down 3.5% and the tech-heavy Nasdaq Composite was down 3.7%.
“It’s just that you have to leave the polls behind and accept the fact that people who don’t wear masks, don’t practice social distancing, don’t do contact tracing … that we’re going to have a lot of case loads,” said Cramer.
The Mad Money host said that by recognizing the shortcomings in the US response to the pandemic, investors will be able to spot individual opportunities in the market that has advantages. He referred to the strong earnings report from Ford Motor, which shows the strength of the automotive market, and General Electric.
“You get one-of-a-kind like Ford and one-of-a-kind like GE, and you get a few more unique pieces. Next, you know you’re like, ‘Why do I just sell everything?'”
Cramer said the number of coronavirus cases in the United States is sure to rise in the coming days. This reflects the comments of the former Food and Medicines Commissioner Dr. Scott Gottlieb, who said that “things are getting worse”.
“”[Investors] know, and we have to build in the Covid drop load, “said Cramer.” We have to incorporate the restaurant shutdowns. We have to build in who the hell knows in the elections. At a certain point it is built in. “
“And then we say, ‘Well listen, I’m not bound by Covid. I don’t want anyone to have it. I don’t want to catch it,'” he added. “But at some point, how often will you discount Covid?”
The sell-off on Wednesday was wide, with all 11 S&P 500 sectors in the red, led by the 4.33% decline in technology. However, Cramer said that the nature of the market move is the foundation of opportunity. “I’m not saying it’s artificial. But I’m saying that good news will create an upswing.”