CNBC's Jim Cramer on Tuesday suggested that investors can sometimes lose sight of the markets' big picture, emphasizing the importance of returning to fundamental investing principles. Cramer highlighted the Dow's recent nine-day decline, oversold market conditions, and stocks that have been beaten down, obscuring their potential, as all components of this broader perspective.
He cautioned against focusing solely on winning stocks of the day, arguing that investors might be limiting their own opportunities. While day trading historically aimed for small gains, Cramer stressed the need for investors to consider the bigger picture and seek substantial returns. He drew parallels to the Dow's previous significant losing streak in February 1978, marked by high inflation and a lack of strong leadership, noting the current context is different. Cramer also pointed to the market's oversold state, suggesting it presents a buying opportunity despite prevailing negativity. He cited as an example, highlighting its 22-point decline from its peak but still impressive 163% year-to-date gain. He believes the stock is experiencing a temporary setback after a substantial run and presents a good opportunity for investors to capitalize on. Finally, Cramer emphasized the existence of stocks that have been significantly impacted, leading investors to overlook their underlying strengths
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