Morning Bell With Jim Cramer: Buy Any Dip From the Fed's Taper

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Jim Cramer talks about the highly anticipated Jackson Hole gathering of central bankers and discusses possible market conditions for September.

Stock futures rose Friday ahead of a speech from Federal Reserve Chairman Jerome Powell that could provide Wall Street with clues about the central bank’s plans for pulling back on stimulus.

Cramer and TheStreet’s senior portfolio analyst Jeff Marks discussed Powell ahead of his Jackson Hole speech and a potential September selloff in the markets.

Powell Speech

Powell’s remarks on Friday at the annual Jackson Hole gathering of central bankers will be watched by investors for clues on when the Federal Reserve may start dialing back its pandemic-related stimulus measures. 

Cramer urged investors to “buy any dip that comes from the taper.”

“He’ll be done tapering when it’s right and it’ll be somewhat seamless. Right now the banks are leading the way. People [investors] are selling things like Mastercard  (MA) – Get Mastercard Inc. (MA) Report, down 5% [on Thursday], that’s something we should pick up [for the Action Alerts PLUS portfolio.] They’re selling fintech and buying banks because people feel that the Fed is going to raise rates instantly,” said Cramer.

Cramer added that he thinks the Fed will take its time because it wants to see what happens with the delta variant, and as the unemployment benefits roll off. “There’s no gun to Powell’s head.”

What to Expect in Early September

Cramer said Zoom Video  (ZM) – Get Zoom Video Communications (ZM) Report will tell an interesting story about how people aren’t going back to the office. “That’s important,” he said. 

“Larry Williams has said that interest rates are expected to go higher in the first 10 days [of September] and that is going to cause the markets to go down. So, keep your powder dry, We’ll have money and we’ll probably have to put it to work into a selloff,” Cramer added.

Mastercard is a holding in Jim Cramer’s Action Alerts PLUS investing club. To be alerted before Jim Cramer adds or removes stocks from the club’s portfolio, learn more now. 

William Murphy

William Murphy

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