CNBC’s Jim Cramer revealed on Tuesday that he has recently reduced holdings in his charitable trust ahead of the earnings season as he becomes more concerned about potential market winds.
The fund, ActionAlertsPlus.com, withdrew about $ 100,000 from its holdings in part because of the problems, he said.
“I’m not a bear, but there are legitimate concerns here, which is why I sold a lot of shares for my charitable trust on the eve of the conference I gave last week,” he told Mad Money. “This market can solve one or even two of these potential problems, but it can’t solve them all.”
Cramer has seven concerns. Below are key elements that drive its ambivalence:
Earnings results
“This week we have bank gains and those stocks have run so high that their numbers need to be perfectly at the limit,” Cramer said. “Call me worried that this hot group could affect the tenor of the earnings season.”
Inflation
“I think [Federal Reserve Chair] Jay Powell is right that the current rise in inflation is transitory, “he said.” I don’t think we will have to tighten up soon because of inflation, but we have been wrong before and this is a legitimate concern precisely because this morning’s consumer price index does not seem so worrying. “
Stock gluten
“I’ve had so many IPOs and so many SPAC transactions that I’m worried about the prospect of a $ 100 billion direct listing. [from Coinbase] sucking money out of everything else, “Cramer said.” Too much supply, too many questions, not enough discipline. “
Covid-19
“We were satisfied with Covid,” said the former hedge fund manager. “I know people are fed up with quarantine, and vaccinations – unless [Johnson & Johnson] – [are] I’m doing pretty well, even though I didn’t get out of the woods. “
S&P oscillator
“We’re really overbought on the S&P oscillator I swear by,” he said. “I had an incredible run and I would feel much, much more comfortable if we continued with a slight decline, rather than a kind of rock jump. The more the market remains overbought, the more I worry.”
Lack of semiconductors
“I’m really worried about these shortcomings, especially the lack of semiconductors. Without chips, I can’t do most manufacturers to increase production,” Cramer said.
External politics
“We have a new president and he feels that everyone, from Iran to North Korea to Russia and even China, wants to test his decision. I am most worried about China, which seems determined to show it to Biden. that he doesn’t want to hear anything about human rights or he will make a move on Taiwan, “he said. “For me, this potential flashpoint is the most dangerous story in the world right now.”