Jim Cramer, from CNBC, presented on Thursday his files and the things he should not invest in the current market environment.
“If you accept the difficult situation and follow these rules, you will have a chance to thrive in this brand new market. But if you try to cling to what worked last year,” said Mad Money host, “I think you’ll be blown away like people who tried to keep dreamy stocks on the internet during the dotcom crash. “
The Dow Jones industrial average rose nearly 200 points to 32,619.48 on Thursday. The S&P 500 rose 0.52% to 3,909.52, and the Nasdaq Composite gained 0.12% to close at 12,977.68.
This is a difficult situation, despite the positive day for stocks, Cramer said, with the market on a downward trend of several weeks. Whenever the market capsizes, he said, investors go through the five stages of pain: denial, anger, negotiation, depression, and finally acceptance.
“I’m depressed now, even though the media came back nicely this afternoon,” he said. “This is when many investors tend to give up the entire asset class.”
Below are his tips to help retail investors cope with the current situation: