For Kramer, such setbacks may be difficult to predict, but they are bound to happen. He used a gardening analogy, comparing withdrawal to rain and portfolios to plants. We need others to achieve growth.
While it’s wise to raise cash to protect against a backlash, Kramer also suggested weathering the disruption. If investors are always trying to avoid the next pullback, they could miss out on the next rally, he said.
In particular, Kramer said there may be an opportunity to buy Nvidia, one of his favorite stocks. He talked about how he was at bat for the tech giant for many years, even when the company’s stock suffered huge losses a few years ago. While some on Wall Street may be tired of artificial intelligence, Cramer asserted that the future is “powered by Nvidia.”
“If you don’t already own Nvidia, you know what? It’s about to be sold,” he said. “If you already have one, stick with it, because it’s very difficult to replace it and then get it back to the right level.”
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Disclaimer CNBC Investing Club Charitable Trust owns shares of Nvidia.
