CNBC’s Jim Cramer said Tuesday that investors need to take advantage of any pullback in stocks that occurs after Election Day, regardless of whether President Donald Trump or Democrat Joe Biden emerge victorious.
“I think that no matter who wins, you have a quick dip and you have to buy,” Cramer said on “Squawk Box.” “I know that sounds simplistic, but the market is simplistic. We always try to make the market as some sort of Einsteinian philosophy.”
Instead, Cramer said that getting to the other side of Tuesday’s election means investors will be able to focus on other metrics to evaluate stocks, such as quarterly earnings. “When we do that, then people will want to buy,” the “Mad Money” host said.
He added that investors wanting to get ahead of any post-election rally could explain why U.S. stock futures rose on Election Day. His comments came as Dow Jones Industrial Average futures were higher by more than 300 points, while S&P 500 and Nasdaq futures also were in the green. Equities opened strongly as futures indicated.
The moves on Wall Street followed the major benchmarks rising Monday, which Cramer attributed to investors rotating into value stocks from high-flying technology names. The Dow gained 423 points on Monday. However, even a strong two-day rally of more than 700 points would only put a small dent in last week’s more than 1,800-point slide, which was the worst week since March.
Cramer said later on CNBC that he believes part of the strength in stocks Monday and early Tuesday stems from investors believing that, “after last week, with the market being down, we can’t afford to wait for the outcome. You have to presume that the outcome is going to lead to some sort of conclusion. Period. And a conclusion is good.”