Jim Cramer: Two of his biggest stock market worries are now off the table

CNBC’s Jim Cramer said a pair of major investment concerns have been resolved in the near term, suggesting that’s a reason for the stock market’s Wednesday rally.

“While I’ve still got plenty of worries, two of the biggest have now been taken off the table,” the “Mad Money” host said, after the Dow Jones Industrial Average and S&P 500 snapped four-session losing streaks.

One resolution came from the Federal Reserve, which maintained its highly accommodative monetary policy after the central bank’s policymaking arm held a two-day meeting. That meant the investors who were concerned the Fed may announce a policy tightening due to high inflation were proven wrong and needed to respond, Cramer said.

“If you were one of the inflation hawks who thought the Fed would have to take a tough line today, then you have to go buy stocks now because [Fed Chairman Jerome] Powell ... has put the concerns to rest,” Cramer said, explaining that money managers cannot “refuse to buy stocks” simply because they disagree with the Fed chief’s policy.

“They have investors and those investors won’t forgive them for sitting out on a rally that they don’t think should happen,” he said.

Cramer said the second worry was resolved in China, when the struggling property developer Evergrande indicated it would complete a payment to onshore bond holders. Earlier this week, Wall Street grew increasingly concerned about financial contagion stemming from Evergrande possibly defaulting on its large debt load.

“Evergrande’s got another big bill coming due tomorrow, the one they owe foreign bond owners. Those foreign bond buyers are mostly from countries that are totally on the hook to China,” Cramer said. “So, they’re not going to care about these bonds. They’ll just take the hit,” he added. “That’s why, despite what you heard in the press, the risk from Evergrande never really was systemic because everybody wants to do business with China, so they’re just willing to overlook losses.”

Cramer has been cautious on the market in recent weeks during what’s a historically challenged period for stocks. The “Mad Money” host has said he sees a large number of risks weighing on Wall Street and believes many of them need to be resolved before the market can meaningfully shake off its September struggles.

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[patrickbregolsajic]

In stock market you need knowledge to identify the right business, courage to buy in good quantities and patience to hold it for long term.compounding will happen over the period of time.

[gk]

He shared 15 reasons to sell. Wonder what happened today?

[juliaaisha]

I HAVE BEEN MAKING LOSSES TRADING MYSELF...I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET... CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?

[amymeyers]

I enjoyed your video, I am actually tired of worrying about stocks and stuffs… its driving me nuts these days, I think cryptocurrency investment is far better than stocks

[a.a.]

Cramer said there will be a 10% correction and sell and sell !!! His predictions are all incorrect

[markh]

What a clown.. no credibility.. its a comedy show for him.. go join SNL .. LOL

[helix]

How come he wasn't saying this couple o days ago?

[RosaLopez-vxyr]

I love your video at large but i will advice everybody who is into cryptos to stick with eth and btc as much as you can guys. if everyone sells when it starts to fall, which at one point it will, the dream may be lost because of it being too volatile for companies to get behind.

[YusefTheConqueror]

If you take the contrarian approach to everything he says you will make A lot of Money! Whenever he says sell everything you should buy everything and vice-versa. Imagine if you bought Monday's Dip...if you missed out don't worry they'll be others...just go against his words and you will do well...btw...He knows this too...He's not as dumb as he looks!

[Richard.Cabeza]

Not every person that speaks on any video is 100% right, so do your own work and don't complain about this guy. So many comments that are just one person parroting another...

[marymem]

Listen to Cramer and then do the opposite.

[davidthecardcollector]

Jim speaking in the short term, follow this guy long term and dont watch his show tomorrow when he changes what everything means and you lose your shirt.

[vpham]

Flip flops based off of what happens on each particular day in the market #AssClown

[Observer]

He will just let is fail and go into receivership so it becomes a state owned enterprise.

[danmoun]

Every time Cramer says one thing I do the opposite and I've been very profitable.

[trentpetersen]

Biggest bubble in the HISTORY OF MANKIND !!

[thecustommuffler]

Lost his edge, needs to get hungry again. Shame, due was great when he came out after living in his car. Now he is another sellout. BYE

[changesinlife]

I was told he spoke on BBIG 260% short interest...was curious as to what he might have said. BBIG TO THE MOON!! The next GME? We shall see.

[justinclynes]

A guest on The Wall Street Journal Report spoke sometime last week about making over $631, 000 in 4months with a capital of $100, 000, which made me realize that as a beginner i have alot to learn, so please assist me with any pointers or tips that would help me make this much profit.

[michaelpearson]

Cramer has berkshire hathway portforlio