CNBC's Jim Cramer said on Tuesday that investors shouldn't worry about the market's decline now that interest rates are coming down.
It can't be both ways. Higher rates and lower rates don't scare you. The host of the show said that it was a sign that the Fed was winning its war against inflation.
Is it a good idea to hate the market or love it? The question is wrong. He said that we should like the stocks that sell at historically low valuations.
The first half of the year was rough for the US stock market. The two-year yield inverted on Tuesday, a sign that a recession is imminent. When short-term Treasury yields are higher than long-term yields, investors think that an economic slowdown will lead to interest rate cuts.
Tech stocks went up while economic growth went down. The US benchmark West Texas Intermediate dropped below $100 a barrel.
Cramer thinks investors should see the market downturn as a buying opportunity.
With the collapse of the oils, there are no groups left that haven't been savaged. It's possible that thinking more positively about this asset class is justified. As stock prices go lower, they get cheaper.