Jim Kramer says the market may hit an ‘investable’ bottom after analysts cut earnings estimates


CNBC’s Jim Kramer said Thursday that a potential series of earnings cuts that analysts expect could create sales and an opportunity for investors to make some purchases.

“In the coming weeks, before earnings season kicks off, I expect analysts will hit us with some pre-emptive cuts to estimates with more companies directing us with negative early announcements,” he said.

That would be bad for the averages, but once the sell-off occurs and the estimated cuts for 2022 and 2023 are exceeded, that’s it. So we wouldn’t have a tradable fund like this, but an investable one. added.

The “Crazy for Money” presenter’s comments come after a turbulent earnings season hit by inflation, leaving companies below Wall Street expectations.

Kramer said he believes analysts’ earnings estimates for S&P 500 stocks are too high and likely to fall because markets don’t bottom out unless bad news emerges in stock prices.

They expect 8% growth, followed by 11% growth next year. I found it hard to believe. He said earnings growth of 8% to 11% is basically what you’d expect in an average year.

He noted that many companies in recent weeks have reported good but disappointing results.

“You’ve had these really cool neighborhoods, but they say things are getting thinner. People love them because they think the discretionary cuts are finally over. I’m not sure,” he said.

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