CNBC’s Jim Cramer said Thursday that he’s grown worried about the stock market’s ability to continue its robust rally from the coronavirus-driven bottom.
“I’m feeling uncertain here after a very big run, fourth-quarter 1999-like,” Cramer said on “Squawk Box,” a reference to the run-up in equity prices that preceded the 2000 dot-com bubble bust.
Cramer’s comments came after Wednesday’s worst single-session decline for the major U.S. stock indexes since June 11 as Wall Street responded to increasing Covid-19 cases across the country.
Shortly after Cramer’s remarks Thursday, stocks opened sharply lower as growing coronavirus infections and a higher-than-expected initial jobless claims figure further complicated hopes for a swift U.S. economic recovery.
Less than one hour into the new trading day, stocks erased their earlier declines and turned positive.
The “Mad Money” host again advised investors to take some profits by selling stocks in their portfolio that have risen dramatically during the coronavirus pandemic.
“Long term I’m bullish,” Cramer said. But he added, “I have to stick by, if you haven’t taken a little bit off, I think you have to.”
In a tweet Wednesday, Cramer further explained his thesis.
Thursday morning on CNBC, Cramer referenced companies such as Okta, up more than 70% year to date; Zoom Video, up more than 270% in 2020; and DocuSign, up over 120% this year.
“I don’t think it’s such a bad idea to trim them. They’re so big,” he said.