Jim Cramer Drops Bombshell On Impending Debt Ceiling Deal – Cryptopolitan

In a startling prediction, noted CNBC financial commentator Jim Cramer warned investors of the turmoil to come next week as the US Congress heads toward a resolution on the current debt ceiling impasse.

Cramer, who has long been an influential voice in the financial community, believes that a successful negotiation of the debt ceiling crisis can unleash a torrent of previously marginalized capital into the stock market.

Decipher the debt ceiling drama

According to Cramer, the end of the debt-ceiling crisis promises a lucrative payout for investors, with the potential for a rejuvenation of market activity that has been somewhat constrained.

“When we get past that debt ceiling hurdle, equities will become irresistibly attractive, tempting capital that was content to earn even a 5% yield to re-enter the market,” Kramer explained.

However, getting to this point will not be a walk in the park. It will be a tough trek, he added, so it is wise to prepare yourself for an adventurous week.

Cramer encouraged members of his investment club to hold onto a large cash cushion for the week ahead, warning that even a buoyant market could collapse under the pressure of such uncertainties.

Next week: earnings and forecasts

Next week’s calendar is full of earnings reports from high-profile companies that could shake up the markets. On Monday, eyes will be on Zoom’s after-market earnings report.

Cramer issued a note of caution to the video conferencing giant, citing potential threats from Microsoft’s heavy push to integrate Teams as the default video conferencing app on Windows.

Tuesday heralds a flurry of retail data, as Lowe’s, Dick’s Sporting Goods, and Williams-Sonoma are all set to release their reports. Cramer expects Lowe’s report to mirror Home Depot’s, and he cautioned that analysts expect less-than-stellar results for Williams-Sonoma.

On Wednesday, market watchers will be looking forward to updates from ELF Beauty, which Cramer beats, as well as Nvidia. Cramer sought to address divided feelings about the value of Nvidia’s stock, noting that it is a stock shrouded in overstatement, considering its $770 billion market cap.

However, he believes one must remember that stock value depends on future earnings, and that Nvidia, as a major player in artificial intelligence, has a promising future, arguably better than any company in the S&P 500.

Cramer cautioned on Thursday about the dismal report from Best Buy, adding that heavily shorted stocks may be the only buffer against decline after a disappointing quarter. Meanwhile, Cramer remains optimistic about Ulta Beauty’s prospects, citing its strong and dedicated customer base.

Cramer ended his forecast on a highly anticipatory note: “Come Friday, we hope to see a debt ceiling deal.” He stressed that the state cannot afford to enter another weekend without resolving this issue, given how close we are to the absolute deadline.

He concluded:

Unlike in 2011, when the debt ceiling was a relatively unnoticed issue that startled many, this time around, the fallout from this debacle is front and center, casting a shadow over the entire nation.

Disclaimer: The information provided is not commercial advice. Cryptopolitan.com assumes no responsibility for any investments made based on the information presented on this page. We strongly recommend that you conduct independent research and/or consult a qualified professional before making any investment decision.

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