CNBC’s Jim Cramer set out on Thursday what he should and shouldn’t do to invest 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 stick to what worked last year,” said the host of “Mad Money”, “I think you will lose yourself exactly as the people who tried to keep up with dreamy actions on the Internet during the dot-com collapse. “
The Dow Jones Industrial Average rose almost 200 points on Thursday to 32,619.48. The S&P 500 rose 0.52%, to 3,909.52, and the Nasdaq Composite gained 0.12%, closing at 12,977.68.
This is a complicated situation, despite the positive day for stocks, said Cramer, with the market on a week-long downtrend. Whenever the market rolls, he said, investors go through five stages of mourning: denial, anger, bargaining, depression and finally acceptance.
“Now we are … depressed, even with averages recovering well this afternoon,” he said. “This is when many investors tend to raise their hands and give up on the entire asset class.”
Below are his tips to help retail investors cope with the current situation: