CNBC’s Jim Cramer told investors on Monday that he believes the Federal Reserve will lead the economy to a soft landing.
“The only outcome will be a soft landing for the economy, which means buying the same stocks back at a higher price to get ahead of an upturn in 2024, so it would be silly to sell now,” he said. .
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Stocks fell on Monday as investors became wary of higher bond yields. Treasury yields rose, with the 10-year yield rising nearly 11 basis points to 3.64% and the 2-year yield rising about 18 basis points to 4.48%. Yields and prices move in opposite directions.
Cramer, who said the market was in bullish mode in recent weeks, doubled down on his stance despite worrying moves in bond yields.
“I go so far as to say that the bond market is wrong. Long-term bond yields are lower than short-term bond yields.[-term] “It’s suggesting a recession, but I think that’s just wrong.”
Cramer added that the main reason for not expecting a hard landing was the better-than-expected January jobs report. Nonfarm payrolls increased by 517,000 last month, well above Dow Jones forecasts of 187,000 and his December increase of 260,000.
“The figures clearly support the concept of a soft landing. When we are seeing so many job creations, we cannot achieve a hard landing,” he said.
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