Mad Money host Jim Cramer advises investors to avoid cryptocurrency and other speculative investments. “Don’t get used to it. Don’t get SPAC’d. Don’t wash, warns Kremer, “scrubbing everything that’s rough.”
Jim Cramer Recommends Investors Avoid Crypto
Jim Cramer, host of CNBC’s Mad Money show, offered advice Tuesday on what to invest in the current market conditions. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
The Mad Money host urged investors to stay away from speculative assets, including cryptocurrencies. He warned that these investments will struggle as the Federal Reserve continues its hawkish stance to fight inflation.
“Look, Fed chief Jay Powell has told us to stop doing stupid things with our money. That was the premise of the speech on Friday,” Cramer said, referring to Powell’s speech in Jackson Hole, Wyoming. The central bank has warned that the Fed’s fight to contain inflation will cause “some pain”.
Cramer explained that the Federal Reserve is “going to bring the pain until it stops gambling.” Referring to Powell’s speech, the Mad Money host said:
Of course, it will hurt some good investments in the process…but we won’t see the end of this fall until all speculation is completely washed away.
Cramer said this includes cryptocurrencies, while other speculative investments investors should include include companies that have gone public through special purpose buyout companies (SPACs) and mem stocks.
He also tweeted on Tuesday that the Federal Reserve is telling people to sell cryptocurrencies, non-perishable tokens (NFTs), initial public offerings (IPOs) and SPACs before these investments wipe out their savings. “No more nonsense,” he shouted.
“The important thing is that we have to get through the issue intact. Don’t be a meme. Don’t get SPAC’d. Don’t be crypto. And when we get through this thicket and sell enough for a big advance, you’re going to find yourself in a much better time,” Cramer explained.
The Mad Money host also commented:
This is what it looks like when the Feds get tough.
In July, Cramer said the crypto emulation showed the Fed’s work to tame inflation was almost done. Moreover, he said that he expects the price of bitcoin to drop to $12,000 in June. At the time of writing, the cryptocurrency is trading at $20,241.
What do you think of Jim Cramer’s tips? Let us know in the comments section below.
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