Considering the effects of a possible recession on your profits: An analysis by Jim Cramer

by | May 7, 2023 | Recession News | 20 comments




“Mad Money” host Jim Cramer breaks down the day’s market action after major indices traded lower….(read more)


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Jim Cramer is a well-known investment guru. As a seasoned financial analyst, Cramer is always eager to share his insights and expertise on the stock market. Recently, he has been talking about the possibility of a recession and how it could negatively impact the profits of investors.

The possibility of a recession is not a new concern. In fact, many economists and financial experts have been predicting it for some time. However, with the current trade tensions between the US and China, Brexit uncertainties, and slowing global growth, the likelihood of a recession is becoming increasingly certain.

So, how could a potential recession impact your profits as an investor? According to Cramer, the effects could be devastating. He argues that a recession would lead to a significant decline in stock prices, which would reduce the value of your portfolio.

In addition, a recession could also lead to lower corporate earnings. During times of economic downturn, businesses may struggle to maintain their revenue and profitability, and may even be forced to cut costs by laying off employees or reducing investments. This could mean lower dividends for shareholders and less money available for share buybacks.

Cramer also warns that a recession could have wider economic consequences beyond the stock market. For example, lower consumer confident and spending could lead to reduced demand for goods and services, with a knock-on effect on company earnings.

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Despite the gloomy outlook, Cramer suggests that there are still ways investors can protect their portfolios during a recession. One option is to invest in safe-haven assets such as gold, which tends to hold its value well during times of economic uncertainty. Another strategy is to look for stocks with defensive characteristics, such as those that are less sensitive to economic cycles or have strong balance sheets.

Finally, Cramer advises investors to avoid panic selling during a recession, as this can often lead to significant losses. Instead, he recommends focusing on long-term investment goals and maintaining a diversified portfolio that is well-positioned to weather economic volatility.

In conclusion, a potential recession could have significant implications for investors. However, by being aware of the risks and taking proactive steps to protect their portfolios, investors can minimize the impact and continue to achieve their long-term investment goals.

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20 Comments

  1. Shelly Salters

    With changes in the economy leading to instability in the stock market, some individuals may face a decrease in their investments in an effort to benefit from the current market conditions, I am considering liquidating my $725k portfolio consisting of bonds and stocks. Someone else in the same situation? Please tell me in the comments!..

  2. Clooney Macanthony

    With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio

  3. Tatiana Starcic

    Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.

  4. Dustin Lamont

    Recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.

  5. Koa Mana

    Does anyone really take this histrionic, meglo-maniacal blithering fool seriously?????

  6. Oliver Dean

    I have been buying some stocks since the beginning of the year, but nothing substantial. Why am I treating this poorly? However, people in the same profession are earning six figures on articles, which inspires me to aim toward becoming the first person in my polygamous family to hit the million dollar mark. I am perfectly aware that working harder to gain more money is expensive.

  7. On The Money

    This show is so entertaining….thank you Jim!

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  9. HeadStronger

    This guy… we know this is upside down world. Giant rug pull incoming…

  10. Nick

    Well, i do have my reservations about the economic crisis. Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $650K portfolio is down by approximately 20%, any recommendations to scale up my ROI before retirement will be highly appreciated.

  11. Erik Kurilla

    A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time.

  12. Flora Tyson

    The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on the govt. Especially with the current economic crisis around the world. This is still a good time to invest in Gold, silver and digital currencies(BTC, ETH..).

  13. yenafar

    Exactly Mr. Kramer, I’m not buying this amount of negativity, the funny thing is, they all scare the regular people talking about recession but they are all buying all kinds of good companies stocks for themselves and companies , they just don’t want the regular people to profit!! I just don’t get this much negativity, it maybe a shallow recession ahead but when? Dam NVDA has more doubled, so is Meta and NFLX, these were the most hated just a couple of months ago!! I believe we should all start buying bitten down banks, a basket of regional banks, because they are just down a lot and before you know it most of them will be coming back big agin, but no they all scare everyone to stay away, semis are also good to get to, or just buy Berkshire Hathaway ! Good luck to all

  14. EfaZen

    i don't watch his shows anymore for years, but he always said there is bull market somewhere, but what is also true is that there is a always a bear market somewhere. THis guy's words are like junk food, it make you feel good at first until you are fat and close to a heart attack death

  15. R Z

    Sell the bounce and buy bigger dip! A long and painful recession is coming. S&P is going to 3200 or lower, in steps. The next stop is 3800.

  16. Fraktal

    So cramer is bullish, big dump coming then

  17. Danny R

    What was that $3 stock?

  18. Phillip Cam

    Ctra was upgraded and still drop. Invite me to Ctra short funerals. I want to attend so so badly.

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