CNBC’s Jim Cramer on Wednesday advised investors to block out the market bears, and use their missteps to bolster their own portfolios.
“Their mistaken selling creates opportunities for you to buy the dips. You need to have conviction that the sellers are wrong and you’re right. You need to believe in your view, not the view the tape gives you — that the bears give you,” he said.
Stocks rose on Wednesday after Federal Reserve Chair Jerome Powell said in a press conference following the central bank’s February meeting that inflation has started to cool down, though he didn’t indicate that a pause in rate hikes would come anytime soon.
The market’s gains reversed earlier declines that came on the back of a quarter-point rate hike. Cramer said that while the selling would have made sense last year, when inflation was still skyrocketing and the central bank was aggressively raising rates, a bearish approach to trading doesn’t work anymore.
“It no longer makes sense once the Fed says the rate hikes are working and we’re pretty far along in the tightening cycle, even as they are still seeing some wage inflation,” he said.
Cramer also reiterated his stance that the market is in bull mode —meaning that when market bears do get scared into selling, investors should pounce on the chance to buy.
“Those who keep fighting the bull, as they did today, think they’re in a bear market, and they get trampled. Today was a real trampler, and the bears — they still don’t know what hit them,” he said.
This post is originally appeared on CNBC