Jim Cramer says he is buying selectively to beat the current market turbulence

CNBC’s Jim Cramer said Thursday that investors looking to successfully navigate a market troubled by inflation, geopolitical concerns and Covid should do two things: buy discriminatory and be curious.

“It’s hard to be curious … But in the long run, curiosity tends to be a much better bet [than panic]. Right now, I think a curious mind would selectively buy stocks, not sell them indiscriminately, “the”crazy money“said the host.

The Dow Jones Industrial Average plunged 3.12% on Thursday while the Nasdaq Composite tumbled 4.99%, with both dips marking the worst single-day losses since 2020. The S&P 500 slipped 3.56%, registering its second worst day in 2022.

The poor market performance comes the day after Federal Reserve He raised interest rates by 50 basis points and said he will start tightening his balance sheet in June.

“Right now, I think the market is anticipating the worst-case scenario and there’s a good chance we don’t actually understand it,” Cramer said of the Fed’s anti-inflation measures.

He added that curious investors should ask themselves several questions to assess the state and future of the market. Here are some of the important questions Cramer outlined:

  • Is every company worth less today than it was yesterday when the stock market rose? Cramer said the answer is no. “If you take a cue from the bond market alone, we are headed for a high-inflation world where the Fed has to aggressively raise rates. That means you should be buying stocks that are doing well … in a slowdown in high inflation,” he said.
  • Will the Russia-Ukraine war or the blockade of China last forever? Cramer reminded investors that this is not the case and predicted it Nike Other Starbucks could see huge snapback rallies once blockages in China end.
  • Is inflation really that deeply rooted in the market? “When only oil and natural gas continue to reach new highs, perhaps this inflation is easier to beat than most people expect,” Cramer said.
  • Do a company’s earnings still matter? Yes, they do, Cramer said, adding it AMDThe stock is a buy, even at its low levels.

He also said it could now be a great buying opportunity for investors who have cash on hand and are looking for additions to their portfolios.

“If you have enough liquidity on the sidelines, the market is selling everything, including some very good, good-yielding stocks that have great prospects that will beat the gains,” he said.

Disclosure: Cramer’s Charitable Trust owns stock in AMD.