CNBC’s Jim Kramer said on Thursday that he was worried that the stock market could continue its powerful rally from the coronavirus bottom.
“I feel insecure here after a very long run, like in the fourth quarter of 1999,” Kramer told Squawk Box, which refers to the jump in stock prices that preceded the 2000 crisis.
Cramer’s comments came after Wednesday’s worst single-session decline for major US stocks since June 11, when Wall Street reacted to an increase in Covid-19 cases across the country.
Shortly after Kramer’s remarks on Thursday, stocks plummeted as rising coronavirus infections and higher-than-expected initial jobless claims made the hopes for a quick recovery in the US economy even worse.
Less than an hour after the start of a new trading day, stocks erased their previous decline and became positive.
Mad Money presenter again advised investors to make some profits by selling stocks in their portfolio, which rose sharply during the coronavirus pandemic.
“In the long run, I’m bullish,” Kramer said. But he added: “I have to stay, if you haven’t taken a bit, I think you should.”
On Wednesday, Kramer further explained his thesis.
On Thursday morning, CNBC Cramer cited companies such as Okta, more than 70% since the beginning of the year; Zoom Video, more than 270% in 2020; and DocuSign, more than 120% this year.
“I don’t think it’s such a bad idea to cut them off. They are so big, ”he said.