Jim Cramer urged investors to resist the urge to liquidate portfolios as Brent Crude surged to $104, warning that missing the eventual “awesome snapback” would be a costlier error than enduring current volatility.
The ‘Mad Money’ Manifesto
“Selling now is a huge mistake,” Cramer declared on Mad Money, acknowledging that while the market is “terrifying,” the current oversold conditions often precede massive rebounds.
With Brent Crude hitting $104.53 and WTI at $97.69, at the last check, Cramer dismissed “naysayers” predicting $200 oil as an existential threat.
“You’ll be kicking yourself if you sell everything and then you have to watch this market rebound without you,” he warned, noting that the S&P oscillator is at a rare -7.5 reading.
Historical Precedent And Strategy
Supporting Cramer’s thesis, historical data provides a silver lining. The Kobeissi Letter reveals that in six out of seven instances since 1986, the S&P 500 has been higher one year after a 20% oil surge, with an average forward return of 24%.
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