Despite two positive days for the market, Cramer worries the gains may be temporary
CNBC's Jim Cramer on Tuesday worried about the sustainability of the recent market action.
Jim Cramer, CNBC's Jim Cramer, expressed concern about the market's recent performance on Tuesday.
Cramer said that even though major indexes have seen gains in the last two days, the positives could be based on the Federal Reserve meeting held Wednesday.
CNBC's
Jim Cramer
On Tuesday, investors were concerned about the durability of recent market activity. Cramer said that even though major indexes have seen gains in the last two days, the positive outcome may depend on the Federal Reserve meeting held Wednesday.
Cramer is a used industrial equipment manufacturer
Caterpillar
As an example. He said despite reporting
Earnings are decent
The company's shares fell before Tuesday's opening. Cramer said that investors were looking beyond the U.S. Government's plans for a slowdown in the economy to be the reason behind this action.
Spend trillions on Infrastructure
.
"Those positives don't matter in this market because we reevaluate companies each and every day, every hour, every minute, based on macro-environment, controlled by the Fed, and the long end, which we call the yield curvature."
Cramer believes that this "instantaneous wholesale revaluation" process may only end when the long-term rates of interest reach their peak, either due to the leveling out of the bond market or because the Fed decides to stop raising rates. Cramer acknowledged that the exact timing of this outcome is unclear.
He said that positive days such as yesterday and today made him feel confident about the projections for 2024. "But tomorrow we are smashed and all the stocks that have rallied today will lose their gains instantly.
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Disclaimer The CNBC Investing Club Charitable Trust owns shares in Caterpillar and Meta.
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