CNBC’s Jim Kramer said Monday that investors should not withdraw from the stock market in fear of the bearish views of billionaires hedge fund managers. “Be careful and listen to the billionaires. They’ve made billions, but that’s not for you,” Kramer told Scoke on the Street. Kramer’s warning was in response to the comments of renowned fund manager Paul Tudor Jones, who said the current market environment resembles that of late 1999, just before the collapse of the dot-com bubble. In a previous interview with Squawk Box, the founder of Tudor Investment mentioned the dramatic surge in Big Tech’s name and the growing speculative behavior. Most recently, some Wall Streets have been pondering the lifespan of generative AI trades. “My guess is that we have all the ingredients to make a kind of explosion,” Jones said. “History often rhymes, so I think the same thing will happen again. If anything, it’s far more likely to explode now than it was in 1999,” Jones added, veiled affirming how AI bubble supporters explained last month’s OpenAI contract with NVIDIA, adding, “That circularity makes me feel uneasy.” Kramer said private investors should ignore Jones’s appeal and argued that it’s too early to enjoy the dot-com bubble comparison. “Using analogies like this will scare you, you say you don’t need to be scared,” Kramer has been warning people of hopeless calls from billionaire investors for years. In fact, his new book, “How to Make Money in Any Market,” includes an entire chapter on it. In an article he contributed to CNBC’s Make It, Kramer explained in detail why. “They already have money. They don’t try to take risks unless failure is nearly impossible. That means they never offer useful stock ideas. Their perspective is completely different from your perspective.” Rather, Kramer believes that the current market is in the early stages of the AI boom. Advanced Micro Devices announced a massive deal with OpenAI on Monday. AMD stocks have skyrocketed over 30% following the news. Almost two weeks ago, OpenAI also announced a $100 billion stake and supply agreement with AMD rival Nvidia. Kramer has said many times that Nvidia should not be traded, it should be owned. The leading AI chip manufacturing company has long held a major position in holding charitable trusts, a portfolio used by the CNBC Investment Club. “This is the Fourth Industrial Revolution,” Kramer said. Nvidia CEO Jensen Juan’s opinion is “very correct,” Kramer added. Concerns about the stock market’s rise seemingly unstoppable is not entirely unfair. As Kramer explained in his Sunday column for Investment Club Members, there is one rule to follow in such times.
