CNBC’s Jim Cramer on Tuesday told investors that the market is in bull mode, so declines represent opportunities to buy on a dip.
“If we’re in a bull market, and I think we are, you have to prepare yourself,” he said, adding, “We have to prepare for the down days now because in a bull market, they’re buying opportunities.”
Stocks rose on Tuesday, with the S&P 500 reaching its best January performance since 2019 on strong corporate earnings and softer-than-expected inflation data. The Nasdaq Composite saw its best January since 2001.
Cramer said the market’s ability to gain due to strong earnings reports suggests that it has more room to run.
“Bear market goes the opposite way — stocks open up, then get clobbered and you feel humiliated. Good earnings mean nothing except price target cuts,” he said.
The market’s gains come a day after stocks fell to start the week. Cramer said that Tuesday’s turnaround shows that high-quality names will eventually rebound in the current market.
“Even if it doesn’t reverse today, well then, there’s always tomorrow, so don’t think of betting against it,” he said.