Jim Cramer: stocks are still the best game in town
The loud-mouthed, red-faced host of "Mad Money", Jim Cramer, is a notorious permabull. So it's not too surprising he's still keen on stocks.
Donald Trump may be worried about a "fat, juicy bubble" in the stockmarket, but Jim Cramer isn't fazed: "Don't let the bubble heads scare you away from making money with your money", said the notoriously loud-mouthed, red-faced host of CNBC's TV programme Mad Money this week.
Cramer, a former hedge-fund manager who also founded the financial news website TheStreet.com, said this week that one of the best lessons he learned while at Goldman Sachs is that you only need to become wealthy once, and those who have made their money are probably better off in lower-risk assets to ensure they don't lose their fortune.
But "if you aren't already rich, the market is still the best way to try to make yourself wealthy". Even though "there will always be bubbles", he doesn't feel the risks are great enough to warrant steering clear of stocks.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Cramer is known as a permabull. Like most of the establishment, he didn't see the crash coming; a few days before Bear Stearns went bust, he insisted it was "fine". His ongoing presence at CNBC seems symptomatic of the financial sector's determination to carry on as if the crisis never happened. So it's no surprise he reckons stocks are still "the best game in town".
Over the long term, stocks are a good way to get rich and equities look more appealing than bonds or cash in this zero-interest rate era. But this may not be the best entry point for US equities, as stretched valuations imply lacklustre long-term returns.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published