From CNBC · Jim Cramer · · 2m
Why I'm staying invested despite the headwinds
Jim Cramer explains why he keeps buying the S&P 500 index fund even as geopolitical tensions, earnings concerns and data center bans cloud the market outlook.
In brief
Jim Cramer explains why he keeps buying the S&P 500 index fund even as geopolitical tensions, earnings concerns and data center bans cloud the market outlook. Jim Cramer continues investing in the S&P 500 index fund monthly despite near-term market headwinds because long-term discipline has historically outperformed…
Cramer's monthly S&P 500 investment
Jim Cramer methodically invests a decent chunk of his earnings each month into an S and P five hundred index fund, though he sometimes wants to skip contributing and keep cash instead.
Earnings expectations look too high
Heading into earnings season, expectations at last seem too high, and off-cycle earnings reports have not been dazzling, giving little encouragement for owning stocks right now.
Geopolitical tensions mount
The Saudis are not fighting back after attacks by Iran-backed Houthi rebels in Yemen.The United States is siding with the Russians to get diesel fuel.There is no end in sight to the war in Iran.
France faces debt and political crisis
Europe has crept back on the scene in a negative way, with France dealing with a growing debt crisis, a budget deadlock, and widespread protests. Many people are probably betting wrong on France.
Data center bans threaten AI growth
The increasingly hostile attitude toward data centers and the companies spending on them is the worst headwind. Nvidia, the world's largest company, cannot get rid of concerns about data center bans and fewer clients.
Fed tightening pressures housing market
The Federal Reserve is hellbent on getting inflation to two percent, and its moves are raising the long end of the yield curve.Yields on the thirty-year Treasury bond are headed to six percent and change.
Cramer's case for staying invested
If he truly believes Fed Chief Kevin Warsh will take inflation down to two percent and not fold under presidential pressure for rate cuts, he has to keep putting money to work in the market.
Discipline beats market timing
Investing has to be done regularly or else. Looking back, if he had decided to skip contributions based on headlines, he probably would not have as much money saved for retirement today.
“if I skip one, there will be many others that are skipped”
Closing eyes to short-term noise
Cramer accepts he must buy stocks in the S and P five hundred that he hates. Despite the craziness, he has made a lot of money with stocks and believes he can do so again.
At a glance
Jim Cramer continues investing in the S&P 500 index fund monthly despite near-term market headwinds because long-term discipline has historically outperformed market timing.
