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Home » Jim Cramer on the Fed's latest policy meeting and positive Evergrande developments financial news

Jim Cramer on the Fed's latest policy meeting and positive Evergrande developments financial news

“Mad Money” host Jim Cramer explained Wednesday why the Fed’s policy decision and the latest Evergrande developments helped the stock market rally. Subscribe to CNBC PRO for access to investor and analyst insights:

CNBC’s Jim Cramer said a pair of major investment concerns have been resolved in the near term, suggesting that’s a reason for the stock market’s Wednesday rally.

“While I’ve still got plenty of worries, two of the biggest have now been taken off the table,” the “Mad Money” host said, after the Dow Jones Industrial Average and S&P 500 snapped four-session losing streaks.

One resolution came from the Federal Reserve, which maintained its highly accommodative monetary policy after the central bank’s policymaking arm held a two-day meeting. That meant the investors who were concerned the Fed may announce a policy tightening due to high inflation were proven wrong and needed to respond, Cramer said.

“If you were one of the inflation hawks who thought the Fed would have to take a tough line today, then you have to go buy stocks now because [Fed Chairman Jerome] Powell … has put the concerns to rest,” Cramer said, explaining that money managers cannot “refuse to buy stocks” simply because they disagree with the Fed chief’s policy.

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“They have investors and those investors won’t forgive them for sitting out on a rally that they don’t think should happen,” he said.

Cramer said the second worry was resolved in China, when the struggling property developer Evergrande indicated it would complete a payment to onshore bond holders. Earlier this week, Wall Street grew increasingly concerned about financial contagion stemming from Evergrande possibly defaulting on its large debt load.

“Evergrande’s got another big bill coming due tomorrow, the one they owe foreign bond owners. Those foreign bond buyers are mostly from countries that are totally on the hook to China,” Cramer said. “So, they’re not going to care about these bonds. They’ll just take the hit,” he added. “That’s why, despite what you heard in the press, the risk from Evergrande never really was systemic because everybody wants to do business with China, so they’re just willing to overlook losses.”

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Cramer has been cautious on the market in recent weeks during what’s a historically challenged period for stocks. The “Mad Money” host has said he sees a large number of risks weighing on Wall Street and believes many of them need to be resolved before the market can meaningfully shake off its September struggles.

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Jim Cramer on the Fed's latest policy meeting and positive Evergrande developments

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30 thoughts on “Jim Cramer on the Fed's latest policy meeting and positive Evergrande developments financial news”

  1. Earlier this week, Cramer displayed a list of about 6 negative issues for the market. Two have been addressed and Cramer says "2 negatives make a positive". He made the statement earlier in the week "…sell your stocks, too many uncertainties during September and October…sell now and wait until a better, lower entry point emerges". He said that after the big market drop, earlier this week. …ho hum…now he's sweeping that under the rug.

  2. Failing traders come into the market and try to predict moves. They trade what they want to see happen. Experienced traders come into the market with zero expectations ready to observe and take actions when it’s time.

  3. Chinesse came to America in the 1800 worked on the railroad got retirement from them sent to China got laundry money got gold all that went to China with no immigration no records of them even being here but railroad retirement is still pay ed them in China .then they came during the 60s 70s sold dope that money to went to China then in the 80s they came back got degrees in engineering and went to work in America for the highest pay then sent that money back to China.that's how things like evergrande were built.but in 2015 there were new does at evergrande and they spent money like a cocaine addict that can't stop reckless abandonment now you have 80 percent of chinas economy on the brink of bankruptcy.please be reminded that China is where America gets its loans from to cover it's reckless spending ways too.youth should never have large sums of money placed in their hands until 50 years old when they finally have experience with it.this is grandfather's and fathers fault as grandmothers and mothers fault they have forgotten to teach their children how to be good stewarts of wealth.and evergrande is the result.

  4. You do realize that there are more accounts on the internet than there are people on the earth if you have one advisor but he has 50 other names which all advise differently how do you know you have honest consultation information.

  5. America is a communist country, it bailed out the banks, not the people. China is a capitalist country, it will let Evergrande fail. If you can't manage, you fail.

  6. SO where did your down call for the last 3 weeks go, Cramer? Don't want to talk about the rigged casino? Why was Evergrande such a big deal this weeked and now Wall St doesn't care? RIGGED. And you're part of it! GUY ADAMI ADMITS HIS BAD CALLS! YOU DO NOT!

  7. ,.,,.,,AMAZON:
    Yep, I bought a ton on the dip. It's getting cheaper relative to its current earnings (half compared to last year).

    Amazon invested $14 billion in the last quarter alone, the same as it spent in 6 months before that. It is a do not sell stock.

    …With the Delta virus coming at full speed ahead, pandemic sales will make a comeback.

    Amazon is investing so much money, that no competitor will ever be able to catch up.

    Amazon's not going anywhere so I know that eventually it will come back.
    Fidelity considers Amazon as a large growth company (probably because as big as it is, it still only has 7% of the retail market)

    buying via Amazon Smile donations donates some money to my favorite charity too!

    Get on board or be runover, it's up to you.

  8. Cramer you think it's a good thing for the Fed to both be in charge of our monetary policy AND reducing unemployment? That is riddled with problems. It's not the Fed's job to lower unemployment, there are plenty of other branches of the government that can do that. The Fed's current course is going to greatly hurt people on a fixed income. Inflation is moving fixed income to stocks to hedge, which is one of the factors helping the markets because it would be ridiculous to stay on fixed income right now.

  9. Can we get a transcript? I have a hard time tuning in to Cramer's style, although it's immensely enjoyable to listen to I think I'm missing some of what he's saying. I tried the "CC" button but it seems to also be confused, perhaps they need to build a generative adversarial network to immitate Cramer and train the artificial intelligence to properly transcribe what he's saying.

  10. A great video for more info on Evergrande, but definitely not going to be a repeat of 2008 nor is it really going to have an impact on US markets well at least of big of an impact as people think… I think Evergrande news coming out during a time in which the market was already spooked, yet preparing for the FEDs remarks.. I think a correction will come when the FEDs easing completely stops and COVID quells entirely, until then we will see a lot of volatile trading days, swings of fear.. BUT investors should stay the course in buying quality stocks while on sale!

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