CNBC’s Jim Cramer told investors on Tuesday that the market is in bullish mode, so the dip represents an opportunity to buy on the downside.
“If we are in a bull market, which I think is, we have to be prepared,” he added. “In a bull market, they are buying opportunities, so now we need to prepare for down days.”
Stocks rose Tuesday, with the S&P 500 posting its best January performance since 2019. This is due to strong corporate earnings and lower-than-expected inflation data. The Nasdaq Composite posted his best January since 2001.
Cramer said the market’s ability to move up with strong earnings reports suggests there is more room for the market to move.
“A bear market goes in the opposite direction. Stocks open and then crash and humiliate. Good returns mean nothing but lower price targets,” he said.
The market rally comes the day after the stock fell at the beginning of the week. Cramer said Tuesday’s turnaround shows quality names will finally recover in the current market.
“Even if it doesn’t turn around today, there will always be tomorrow, so don’t even think about betting on it,” he said.
