CNBC’s Jim Cramer laid out on Thursday the dos and don’ts of investing in today’s market environment.
“If you accept your situation and follow these rules, you will have a chance to thrive in this new market. But if you try to hold on to what worked last year,” said the host of “Mad Money”, you will be astonished as the people who tried to get hold of the dreamers’ internet shares during the dot-com crash. “
The Dow Jones Industrial Average rose nearly 200 more points Thursday to 32,619.48. The S&P 500 rose 0.52% to 3,909.52 and the Nasdaq Composite gained 0.12% to close at 12,977.68.
This is a tough situation, despite the positive day for stocks, Cramer said, with the market in a week-long downtrend. Whenever the market turns upside down, he said, investors go through the five stages of grief: denial, anger, bargaining, depression and finally acceptance.
“Now we’ve hit … the slump, even as the averages rebounded well this afternoon,” he said. “This is when many investors tend to raise their hands and give up the entire asset class.”
Here are his tips to help retail investors get through the current situation: