Jim Cramer
Adam Jeffery | CNBC
CNBC’s Jim Cramer said Wednesday the economy is better than the recently embattled stock market reflects.
“I think you’re being faked out” by tanking U.S. equities, Cramer said on “Squawk on the Street, ” pointing to relatively solid corporate earnings and signals in the U.S. economy that growth can withstand drag from the U.S.-China war.
The Dow Jones Industrial Average sank more than 300 points at the Wednesday open on Wall Street after breaking a five-day losing streak the prior session. Stocks were plummeting again as money poured into the perceived safety of bonds, which on Wednesday pushed the yield on the benchmark 10-year Treasury note, used to set mortgages and auto loans, down to October 2016 lows around 1.6%.
“It’s very easy to take our cue from a false cue,” Cramer added, warning investors not to move too quickly when markets are in turmoil. “We have to figure it out.”
This week’s stock sell-off started on Monday, sparked by concerns about the impact on global economic growth from the escalating trade dispute between Washington and Beijing.
Cramer said Wednesday that everybody needs to “dial back the rhetoric,” and to look at the “reality of the companies that are reporting” solid earnings.
