- CNBC’s Jim Cramer told investors on Thursday that it was too early to be bullish on the market, even if lawmakers could reach a deal before the default deadline.
- In the year Using the 2011 debt ceiling crisis as a guide, Cramer said it’s better to “keep the cash aside and wait.”
CNBC’s Jim Cramer told investors on Thursday that it’s too early to panic about this market, even if lawmakers could end the debt ceiling deal.
“Even if the Democrats and Republicans cut the deal, I would advise you to take a big cash position, because in the past, the S&P cut has been gutted after a few days,” he said, citing the Standard. A sharp decline in the poor after the 2011 debt ceiling deal.
Cramer said that although an agreement was finally reached in 2011, the market was still affected.
And so far, Cramer said, this year’s debt ceiling deterioration is running parallel to 2011’s, making the S&P’s past downgrade particularly outstanding.
“So, knowing what we know about 2011, it’s premature to be bullish on this market,” Cramer said. “Best to keep the cash aside and protect it.”
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