Jim Cramer from CNBC on Thursday explained his things that shouldn’t be done for investing in the current market environment.
“If you accept your position and follow these rules, you will have a chance to succeed in this smart new market. But if you try to stick to what worked last year,” the “Mad Money” host, “I think your explosion will go out just like the people who tried to stick to dream internet stocks at the time of the fall of dotcom.”
The Dow Jones industrial average climbed nearly 200 points higher on Thursday to 32,619.48. The S&P 500 moved up 0.52% to 3,909.52, while the Nasdaq Composite gained 0.12% to close at 12,977.68.
This is a difficult situation, despite the positive day for stocks, Cramer said, with the market on a weekly decline. Once the market is over, he said, investors go through all five levels of sadness: rejection, anger, negotiation, depression and eventual acceptance.
“We’re now done … depressed, even as the averages went back nicely this afternoon,” he said. “This is when a lot of investors tend to throw up their hands and give up the entire asset class.”
Below are his suggestions to help retail investors meet the current situation: