Investors should be willing to put cash to work after the market’s worst day since “Black Monday” in 1987, Jim Cramer said.
“There’s trillions of dollars on the sideline, waiting and waiting and waiting,” Cramer said. “They’ve got what they’ve been waiting for.” He asked, “How can you not start buying here unless you just are so fearful?”
The S&P 500 and Nasdaq on Thursday joined the Dow in bear market territory, down more than 20% from their all-time highs last month.
Cramer said pullback, driven by widespread fears of a global recession because of the coronavirus, creates opportunities to buy into companies that are still positioned for long-term growth.
He said that means companies with both strong balance sheets and operating in sectors with continued relevance to consumers, such as Verizon and Bristol-Myers Squibb.
Cramer pointed to Disney as another example. Cramer said he had been waiting for news that Disney would close its U.S. theme parks, which the company announced Thursday.
“I think Disney is a buy today,” he said. “There’s always people who don’t know about these things and they say, ‘Holy cow, they closed the parks.’ And they sell the stocks even though it might be a terrific buying opportunity.”