Yes, this market is just plain awful, Jim Cramer admitted his Mad Money viewers Thursday. But over the long haul, the best way to make money, Cramer said, is by believing, not disbelieving, by owning stocks, not renting them, and by engaging when times get tough, not running and hiding.
Has Cramer become hopelessly optimistic? Over the short-term, perhaps, but the long-term trend for stocks is always higher.
You can make a fair and rational bear case for just about every stock right now. Apple (AAPL) – Get Apple Inc. Report could suffer from lockdowns in China more than expected. Nvidia (NVDA) – Get NVIDIA Corporation Report could suffer rom a slowdown in gaming. Costco (COST) – Get Costco Wholesale Corporation Report could easily go the way of its rivals Target (TGT) – Get Target Corporation Report and Walmart (WMT) – Get Walmart Inc. Report.
But after the smoke clears, Apple has always been a long-term winner. Nvidia survived the bitcoin mining slowdown, and it can surely survive a gaming slowdown. And Costco has always reinvented itself and come out ahead of its peers.
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That’s why Cramer said investors need to have conviction and not simply sell everything and go home. Over the long run, taking the pain and staying invested is the only way to succeed.
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