Investment guru Jim Cramer says now is the time to dive back into the oversold market and start buying shares.
"I saw that whoosh happen," Cramer said on CNBC, referring the market’s attempt to rally in the afternoon quickly collapse.
"We are oversold," he said.
As far as what to buy, Cramer did offer some tips.
Cramer touted Amazon, even though the stock is trading at over $1,750 a share. So if someone wants to buy 10 shares, they should buy two, CNBC.com cited him as saying.
"I don't know when you buy Amazon other than it's when down big and people are really scared," he said.
Cramer said there are other "interesting" tech situations like Cisco, which has a good yield, and Verizon.
"The time to really be aggressive in selling happened. If we get anything good out of China … or if we get any news that [Fed Chair Jerome] Powell agrees with my view, we're going to say ‘Why didn't we do some buying?" Cramer said.
To be sure, U.S. stocks surged Friday, joining a global rally in equities after two days of market tumult as trade tensions between the U.S. and China seemed to ease, at least temporarily, with the countries planning to meet in November and the Treasury Department saying that China isn’t manipulating its currency, Bloomberg explained.
Meanwhile, as traders debate whether the correction has created immediate buying opportunities, earnings remain key as third-quarter reports from U.S. companies will show whether the Trump Administration’s tax breaks are still boosting corporate profits.
“We expect further volatility and possible additional down moves,” though “the bear checklist is not yet flashing red,” Pascal Blanque, chief investment office at Amundi SA, said in a client note. “The focus will be on the U.S. earnings season, so any news will be carefully assessed by the market.”
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