Don’t rule out a strong 2022 stock rally after 2021’s gains

Don't rule out a strong 2022 stock rally after 2021's gains

CNBC’s Jim Cramer on Monday urged traders to maintain an open thoughts heading into 2022, contending that the inventory market’s sizable advance in 2021 doesn’t routinely rule out the potential of robust positive aspects this 12 months.

“Issues can and do go proper. It may be totally different this time. Typically it’s a must to droop your short-term skepticism to make long-term cash,” Cramer mentioned.

“Will hope spring once more in 2022? Cannot make sure,” the “Mad Cash” host acknowledged. “However the backside line? Except we notice that it occurred earlier than, simply final 12 months, we cannot be prepared for the alternatives it should create if it occurs once more.”

Cramer’s feedback got here after Wall Road recorded a optimistic first buying and selling session of 2022, with the Dow Jones Industrial Common and S&P 500 posting document closing highs.

All three main U.S. fairness averages notched double-digit positive aspects in 2021, led by the S&P 500’s almost 27% transfer increased. The Dow and Nasdaq superior 18.73% and 21.39% in 2021, respectively.

As traders navigate the brand new 12 months, Cramer mentioned it is essential to keep in mind that many shares in 2021 defied bearish expectations and should accomplish that once more in 2022. Cramer talked about Tesla, Apple and Nvidia as three examples of shares that carried out nicely in 2021 regardless of doubts about their skill to maintain rallying.

“Usually once you hear ‘hope springs everlasting,’ it is meant in probably the most derogatory means attainable, like you have to be an fool to imagine something good may occur,” Cramer mentioned. “However I might reasonably be an fool who makes cash than a genius who misses out on nice alternatives.”

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