CNBC’s Jim Cramer on Friday told investors to be cautious in the coming week, even though markets are fairly calm amid expectations that Wednesday’s Federal Reserve meeting won’t end with a rate hike.
“It’s no surprise to regular viewers, but I don’t trust a healthy market like this,” Kramer said. “Too many things can freak you out, too many things can make you panic, and of course, if you get in at these levels, say, start buying today.” If it does, you probably aren’t very sure, and the market suddenly faints.”
Kramer will focus on software company Oracle’s expected earnings report after the market closes on Monday. He suggests buying some stock ahead of time, waiting to see if the stock falls after the news, and buying more if it does.
Home Depot is scheduled to hold an analyst meeting on Tuesday, which Kramer believes will be important because the company is currently in the “Christmas season” with spring and summer gardening prevalence.
“I think you’ll hear more and more do-it-yourselfers buying things and that’s a change, fixing up their own homes that they couldn’t or weren’t willing to sell. Why?” Kramer asked. “Because they don’t want to lose the low mortgages they’ve gotten over the past five years.”
News from the central bank is due on Wednesday, but Cramer isn’t convinced that Powell’s hawkish tendencies are completely gone. Florida-based homebuilder Renner also plans to hold a conference call on the same day, and Kramer hopes to hear about the “witch’s drink” of inflation with rising labor, housing and materials costs.
Retail will be the focus on Thursday, with investors hearing from Kroger, the supermarket chain that is attempting to merge with Albertsons against the wishes of Federal Trade Commission Chairman Rina Kern.
And on Friday, the University of Michigan Consumer Sentiment Index will be released, giving investors a clearer view into the minds of consumers, Kramer said.
“Don’t settle for the status quo, as so many people do now that we are fully recovered. There are still many things that can go wrong in the market. More than I thought. is much more, and certainly more than when we were lower,” Kramer said.
“I would be very surprised if Wall Street were excited about the Fed meeting next Wednesday,” he said. added.
