After a hard day of trading on Wall Street, CNBC’s Jim Kramer said the market is giving investors the opportunity to find stocks that are very good.
“Even though we had a brutal sell-off today, we are still one of the biggest second-chance markets I’ve ever seen, as you saw with industrialists in the early morning and at the end of the day, “Mad Money” host said.
The Stocks had a mixed session on Tuesday, with the Dow Pass leading the way and the S&P 500 losing 0.7%. The Tech-Heavy Nasdaq Composite pulled back about 2%.
“We have seen this happen countless times, people, yet it is very difficult for people to remember that you want to buy, not sell, when stocks are falling.”
Kramer pointed to a case against selling to trade in drug stocks. Shares of Merck, Bristol-Myers Squibb and Eli Lilly, he noted, missed estimates last week in their quarterly earnings report.
“I think Eli Lilly, who we own the charitable trusts … represents real value compared to the rest of the market,” he said. “Lily makes a fortune and when its stock was crushed to a bad tape, you’re ready to buy it. Apparently, a lot of money managers agreed because it ended the rally today.”
Eli Lilly stock closed at $ 188.20 on Tuesday after rising 1.2%. Kramer on Monday suggested a move to authorize a $ 5 billion buyback to Eli Lilly, which could be a turning point for the stock, which is up more than 11% since the end of January.
Disclosure: Kramer’s charitable trust owns shares of Eli Lilly.
Read Original Article at www.cnbc.com