In a broad-based sell-off of this magnitude, investors have to be prepared to wait and see how low stocks can actually go, CNBC’s Jim Cramer said on Thursday.
“At moments like this, you need some touchstones to figure out when the pain is likely to end,” the “Mad Money” host said. “This is not the time to be a hero.”
And with the major averages down sharply just one day after the Dow Jones Industrial Average hit a record high, Cramer warned investors not to be too aggressive just yet.
“When it comes to this decline, I think it’s too early to be really aggressive,” he said. “I am worried about your fellow shareholders. They’re your worst enemies right here. Many of them are people with big profits, renters who were just along for the ride. They don’t want to give up their gains.”
So, when will you know that it’s time to act? For that, Cramer laid out the 10 “telltale signs” that could drive the market to its true bottom.