Jim Cramer said Tuesday that widespread pessimism in financial markets is pushing down prices even as parts of the economy remain strong, creating what he sees as attractive entry points for investors willing to absorb near-term volatility.
His comments came against a backdrop of climbing Treasury yields, stubborn inflation, and surging oil prices that dragged stocks lower across the board Tuesday. The 30-year Treasury yield reached 5.33% while Brent crude crossed $90 a barrel, with diplomatic talks between the U.S. and Iran showing no signs of progress.
“I know ‘not bad’ isn’t much of a clarion call. But you’re certainly getting better prices than you’d see if the backdrop were good,” the “Mad Money” host said on CNBC. “Maybe that’s the way to think about it. That’s the opportunity, and the cost seems to be manageable, even if this likely isn’t the exact bottom.”
Cramer argued that fears surrounding both oil and bonds may be overdone. In his view, Brent crude is unlikely to climb much past $100 a barrel, given that new supply is set to enter the market. On the bond side, he said higher Treasury yields could draw in buyers seeking to lock in returns on government debt — which would, in turn, push yields lower, since bond yields move inversely to prices.
Technology is another area where he sees opportunity. Noting that short positions against the Nasdaq 100 have hit a record, Cramer said he is taking advantage of the selloff to buy beaten-down data center stocks. Micron was one name he singled out; his Charitable Trust — the portfolio behind CNBC’s Investing Club — picked up shares as demand for AI-related memory chips has surged.
Consumer spending gave Cramer additional reasons to avoid a bearish stance. On the consumer side, Airbnb’s results showed vacationers still spending freely, and Club name Home Depot posted what Cramer described as its “best quarter in five years.” “All I can tell you is that, at the end of the day, we’re a service economy,” Cramer said. “If service is doing well then you can’t be too negative.”
Cramer’s Charitable Trust’s interest in Micron fits a broader view he has expressed on memory stocks. He argued earlier this week that AI data centers have created a persistent shortage of memory capacity, with manufacturers now locking in revenue through extended customer contracts rather than expanding production. Cramer said he believes Micron could double again before the current AI-driven boom ends, though he acknowledged that a slowdown in data center construction or a new wave of supply additions could end the rally.
