After a tough trading day on Wall Street, The Washington City Times’s Jim Cramer said the market offers investors the opportunity to find stocks that are excellent for sale.
“Even though we had a brutal sale today, we are still in one of the biggest second chance markets I’ve ever seen, as you saw in the industry between mid-morning and the end of the day,” the “Mad Money” said the host.
Stocks had a mixed session on Tuesday, with the Dow gaining at close and the S&P 500 falling 0.7%. The tech-heavy Nasdaq Composite retreated almost 2%.
“We’ve seen this happen countless times, folks, but it’s really hard for people to remember to buy, not sell, when the stock collapses,” Cramer said.
Cramer pointed to drug stock trading to argue against selling in the event of a sell-off. Shares of Merck, Bristol-Myers Squibb and Eli Lilly, he noted, bounced after missing estimates in their quarterly earnings last week.
“I think Eli Lilly, who we own for the charity… represents real value to the rest of the market,” he said. Lilly is making fortunes and if her stock was crushed on a bad bond, you have to buy it. Apparently a lot of money managers agree, because it came together again today. ‘
The Eli Lilly stock closed at $ 188.20 on Tuesday after an increase of 1.2%. Cramer suggested that Eli Lilly’s move on Monday to approve a $ 5 billion buyback could mark a turning point for the stock, which is down more than 11% from the end of January.
Disclosure: Cramer’s charity owns shares of Eli Lilly.
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