CNBC’s Jim Cramer on Thursday blasted wealthy money managers for making dire predictions and scaring individual investors out of the stock market.
On “Squawk on the Street,” Cramer called out Jeremy Grantham one day after the GMO co-founder, who called the 2008 financial crisis, told “Closing Bell” that the market’s rebound from the March coronavirus lows is emerging as “the fourth ‘Real McCoys’ bubble” of his career. Grantham, 81, also advised investors to take their U.S. exposure to zero.
“Our viewers don’t want to be talked out of” investing in stocks and potentially making money, Cramer said. “Jeremy Grantham, he may not want it. He may be so rich he doesn’t need it.”
“Our viewers have every right to capture that money despite many people coming on and saying, ‘No, that’s a bubble,'” Cramer said. “Yes, you can lose money,” he added, but also asked, “Why can’t our viewers make money?”
The “Mad Money” host added: “You can buy and you can sell. And the insult that I hear rich people [who] come on is to think that once you bought you’re going to buy and hold to the poorhouse because everyone says buy and hold. I say buy and make money.”
The Dow Jones Industrial Average, before last Thursday’s nearly 7% decline, had been up nearly 50% from its March 23 low. The Dow opened lower this Thursday, one day after breaking a three-session winning streak.
Earlier this month, Cramer pointed out, “The wrong ‘smart’ hedge fund trade has decimated people.”
GMO did not immediately respond to a request for comment on Cramer’s remarks.