After a bad day in Washington and Wall Street, CNBC’s Jim Cramer Investors are warned that lawmakers will inevitably make them pay as debt-ceiling talks drag on.
“Get ready for our politicians to make you lose more money,” Cramer said, referring to an earlier impasse in 2011 over the debt ceiling. “They hurt you then. They’re not done hurting you now. But unless you’re trading full-time, it’s very hard to leave early and come back early to make an impact, which means pain for most of us.”
Market watchers are also weighing an emerging news New Covid-19 variants In China, he said.It is unclear whether this new wave will prompt Beijing to impose new travel restrictions, many of which Relax months ago.
“We don’t know if travel will be banned or restricted, although Macau casino stocks are trading like it’s going to happen,” Cramer said. “And we don’t know whether the psychology of Chinese consumers, who have been enthusiastic recently, will be affected.”
With the on-again, off-again debt-ceiling talks ringing in his ears in 2011, Cramer was pessimistic about lawmakers’ ability to strike a deal before the chaos set in.
“Although we finally reached an agreement [in 2011] And avoiding the worst, the impasse would be enough for S&P to downgrade our government’s credit rating,” he said.
Cramer considered the benefits of selling shares ahead of a potential market downturn, but worried that many people wouldn’t be able to buy back shares fast enough to see real gains.
“However, I’d be hesitant to suggest that you sell and buy back, because we don’t know if you’ll be able to get back in before things work out,” Cramer commented. “That said, if you think our leaders are serious about getting a deal, it might be worth trying to avoid the coming recession – if we follow the 2011 playbook, there’s about a 12% decline floor between now and now. ”