Tags: jim | cramer | market | problems | plunge

Jim Cramer: 5 Problems Fueling Market Plunge

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Tuesday, 20 November 2018 09:01 AM EST

Investment guru Jim Cramer has identified 10 problems that are fueling the seemingly endless stock-market plunge.

"When does this rout end? When do the buyers come in? When do the sellers finish?" he wondered aloud on CNBC.

"Frankly, we don't know, and that uncertainty is what allows this roving bear market to keep tearing us to pieces," he said.

Here is a look at five of the 10 problems Cramer highlighted:

  1. Apple’s plunging stock. "This market can't stabilize until Apple stabilizes," said "Mad Money" host, whose charitable trust owns Apple shares. "My view? Apple is a long-term hold, with its huge installed base giving the company's service revenue stream a lot of room to grow, which is why you own it [and] don't trade it," he said.
  2. Facebook. Cramer said that management has turned the social media giant's situation into "an unmitigated disaster."
  3. The Federal Reserve’s plan to keep hiking interest rates. "It's a shame that we need to wait until things get that bad before the Fed will change course, ... but they don't seem to care about anything the markets are saying," he said. "The Fed wants concrete evidence of people being thrown out of work before they become less hawkish. I do not think that's the way to run the Fed, but I am definitively not in charge."
  4. Dip buying. "For the first time since the financial crisis, dip buying has failed," the "Mad Money" host warned
  5. China. "If this administration views trade with the People's Republic as simply providing fuel for their attempts to become a superpower, ... you could easily imagine them cutting off that trade entirely," he said.

To be sure, Wall Street was poised to continue plunging  as a technology rout in the previous session sparked by concerns over iPhone sales sapped investors’ appetite for high-growth companies.

Signs of slowing demand for the company’s flagship iPhones have wide-ranging implications for technology and internet companies at a time when investors are fretting over peaking corporate earnings growth, rising borrowing costs, and a global economy weighed down by trade tensions.

“It seems investors have two key concerns. One is the anxiety over the trade tensions narrative, and two, what will the Fed do next,” Hussein Sayed, Chief Market Strategist at FXTM, told Reuters.

“With all three major indices trading below their 100- and 200-days moving averages and all the FAANG stocks in bear territory, it now requires a solid shift in fundamentals to revive confidence.”

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InvestingAnalysis
Investment guru Jim Cramer has identified 10 problems that are fueling the seemingly endless stock-market plunge.
jim, cramer, market, problems, plunge
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2018-01-20
Tuesday, 20 November 2018 09:01 AM
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