Jim Cramer says it is too early to purchase till we discover out whether or not new variant is spreading within the U.S.
Friday’s sharp drop in stocks, sparked by concerns about a new variant of Covid-19, is not an opportunity to buy, according to CNBC’s Jim Cramer.
“We’ll wake up next week and find one [case] in this country and I am not going to recommend anyone buy anything today until we are sure it is not going to happen. And I can’t be sure if that’s not the case, ”he said on CNBC’s“ Squawk on the Street ”Friday.
“Don’t panic. Let others panic. We will benefit from this Monday,” he added.
The Dow Jones Industrial Average lost 800 points on the opening bell, a 2% loss. The S&P 500 lost about 1.3%. The sell-off followed the World Health Organization’s warning on Thursday of a new variant discovered in South Africa.
Cramer said it makes sense for names like Regeneron and Pfizer to move higher, but avoid other areas of the market.
“I hesitate to say that this is the time to buy a retailer or buy a cruise line because there will be people who are much more risk averse than you and I and then refuse to believe that scientists can get that,” below Control, so no buying opportunity, “he said.
However, Cramer said there are some areas of the market that look attractive on a sell-off, including chevron.
“If I had to start buying anything today, I would buy Chevron,” he said. “There is demand for oil, there will be travel … I try to distinguish between my concern about what is going to happen and what people are doing on the same day where they might just decide,” You know what, me “Can’t take it anymore. ‘ And I’d rather buy from these people on Monday than from them today, “he said.
Cramer added that Amazon is likely to do well on Friday. At the opening bell, the stock gained 1%.
Others, however, said Friday’s decline was a buying opportunity.
“Friday is the day after Thanksgiving, probably not that many traders on their desks with an early close today. Therefore, potentially lower liquidity is causing part of the withdrawal, ”said Ajene Oden of BNY Mellon Investor Solutions in CNBC’s“ Squawk Box ”. “But the reaction we’re seeing is a buying opportunity for investors. We have to think long-term.”
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– CNBC’s Jesse Pound contributed to the coverage.