CNBC's Jim Cramer has urged investors to consider taking profits from their holdings amid rising market speculation this year. US stocks declined sharply on Tuesday as tensions escalated over President Donald Trump's plans to take control of Greenland.
Late last week, Trump announced a 10% tariff on eight NATO members starting 1st February, potentially rising to 25% on 1st June if no deal is reached to incorporate Greenland into the US. The 10-year Treasury yield surged to 4.299%, the highest since early September 2025.
'You haven't made a profit unless you ring the register on some of your gains,' Cramer said, emphasising that those are 'paper gains, which don't count.' He advised investors to consider selling stocks with significant gains, especially those that have soared this year. This strategic move can help safeguard gains and reduce potential losses if the market turns volatile again.
Cramer highlighted 30 US stocks with a market cap over $1 billion (£744.2 million) that have gained at least 50% year-to-date. However, he warned that many of these companies lack earnings and have minimal sales, mirroring the speculative surge seen last summer in sectors like quantum computing, cryptocurrencies, and alternative energy. Investors should be cautious, as these sectors are highly volatile and susceptible to sharp declines, especially without solid earnings backing their valuations.
In late September, Cramer warned about overheated markets and recommended selling some of the hottest stocks with weak earnings. Since then, many such stocks, including Oklo, have fallen sharply and remain below their peaks.
'Back then, I excoriated those who failed to take profits. I was loud and noisy about it, and I'm doing the same right now tonight. I'm not advocating that you sell everything; I'm advocating that you try to take a big percentage of your stock and put it in cash. That way, you're playing with what I call the house's money,' Cramer said.
What Is Cramer Buying?
Cramer noted that the S&P Short Range Oscillator was in the overbought zone most of last week, prompting the team to 'raise a lot of cash' as they look for potential buying opportunities.This cautious stance reflects the prevailing market volatility and the need for strategic patience.
He mentioned that they bought shares of Alphabet (Nasdaq: GOOG/GOOGL), which traded down 1.6% amid Tuesday's volatility. He also said Meta Platforms (Nasdaq: META) is no longer expensive after losing nearly 17% over the past three months, though he noted the company 'is in freefall' due to its aggressive AI spending.
Cramer reaffirmed his bullish stance on TJX Companies (NYSE: TJX), calling it 'the one to buy.' He explained that TJX stands to benefit from the potential bankruptcy of Saks Global, which is expected to flood the off-price market with inventory. 'The only company that's ready with the cash is TJX,' he said, predicting the stock 'is about to make a major move up.'
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Originally published on IBTimes UK
