- CNBC's Jim Cramer on Tuesday told investors not to let their perception of stocks be clouded by "gloom," encouraging them to focus on companies' overall health instead of stock movements.
- "If you let the gloom control you here, I think you'll be making the classic mistake so many make," he said.
CNBC's Jim Cramer on Tuesday warned investors not to get caught up in the sense of "gloom" shrouding Wall Street — especially in September, a historically down month for the market — that is bringing down stocks of companies he sees as solid.
"If you let the gloom control here, I think you'll be making the classic mistake so many others make: Rather than freaking out, you need to realize that it's September, it's just the September rain, nothing more that's controlling your emotions," Cramer said. "Once we get through this seasonally tough period, things will feel very differently, and the gloom will finally lift."
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Cramer explained that sometimes factors unrelated to the actual health of a company cause stocks to fall. He used Disney as an example, saying its stock fell more than 3% on Tuesday after the company announced it would nearly double its investment in the theme park business.
To Cramer, this move is a positive development, noting that Disney is investing in its brands and intellectual property that competitors like Netflix don't have, and that it shows the media giant has confidence in the strength of its balance sheet.
He also said gloom is clouding Wall Street's perception of Nvidia — which finished Tuesday down about 1% — saying there isn't any solid reason the stock is going down. Cramer emphasized that Nvidia still owns powerful graphics chips that are essential to artificial intelligence.
Money Report
Cramer also pointed out Starbucks' recent decline and analyst downgrade, due to concerns about its performance in China. But he said the analyst who downgraded Starbucks just "couldn't take the pain any longer," noting the concerns about China are nothing new.
"I'm not going to take my cue from the disgusted and the bewildered who panic every time the averages go down and their stocks are going down with it," Cramer said. "If you let them, the others, the sellers, the gloomsters, do your thinking, you'll be selling into weakness, instead of buying into it. You'll be buying intro strength when you should be letting things go."
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Disney, Starbucks and Nvidia.
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