Cramer’s Warning Amid Market Volatility
Jim Cramer from CNBC cautioned on Thursday that the ongoing conflict in Iran is leading many anxious investors to sell off their portfolios. He emphasized the importance of staying invested rather than giving in to panic.
“Even in scary times like these, it usually makes sense to stick with your investments,” Cramer shared on “Mad Money.” “If you just sell everything now, trust me, you’ll end up regretting it as you watch the market bounce back without you.”
It’s understandable to feel overwhelmed. Recently, both the S&P 500 and Nasdaq dropped about 1.5% and 1.8%, respectively. Meanwhile, U.S. crude oil prices surged more than 9.5%, climbing to over $95 per barrel. This spike can be attributed to Iran’s supreme leader, Mojtaba Khamenei, stating that the Strait of Hormuz would remain closed to exert pressure. As a result, Brent crude oil, the international benchmark, has hit over $100 for the first time since 2022.
If investors decide to fully exit their positions during these dips, trying to find the right moment to re-enter the market could be tricky. “Sure, it might seem appealing to sell everything now and avoid potential losses in the coming days,” Cramer noted. “But we really can’t predict when this conflict will end.”
However, one glimmer of hope is that President Trump doesn’t want a bear market for stocks. Historically, presidents have used the stock market as a measure of their success. It’s concerning to see the S&P 500 decline for the third consecutive time, but it’s still only down 4.7% from its recent peak—a decline that doesn’t even classify as a correction, which is 10% off the high. A bear market, on the other hand, is defined as a 20% drop.
This context suggests that the Trump administration might be motivated to resolve tensions quickly to avoid prolonged downturns in stock values. Cramer recalled how stocks fell after Trump announced significant tariffs on key U.S. trading partners in April 2025, but quickly rebounded once many of those tariffs were suspended a week later.
“Trump’s approach is pretty clear. He’s willing to make tough decisions that could negatively impact the market, but he’s also got a tendency to pivot if the situation gets too alarming,” Cramer remarked. “This might lead to a resolution sooner rather than later.”
While it’s uncertain what a resolution to the Iran conflict would entail, Cramer speculated that a back channel through Qatar might allow Trump to portray it as a victory. “I’m no military strategist—just someone who watches the markets. But eventually, this conflict will end. If you’re not invested before a ceasefire, you might miss out,” he concluded.
