Jim Kramer of CNBC on Tuesday highlighted his belief that the market could be a wealth vehicle in the long term, suggesting investors would park their money in both index funds and growth stocks.
“We’ve been blessed with an incredible market here, and I know that,” Cramer said. “But that’s not always the case. You have to learn to trust the market.”
According to Cramer, it is wise to have a “branched portfolio” with half focusing on index funds and the other half focusing on five stocks. He suggested that you need insurance for a good stock portfolio, just like a home or a car.
Cramers are important to pay at least a little each month, and staying in the market through short-term hiccups. He said he recommends investors own high-quality growth stocks instead of trading inside and outside the company, and that they encourage them to combine their profits.
Cramer also said he believes that the younger generation today has the opportunity to earn a great reward from investment. In the past, the process of making money has been easy, he said.
He also refers to his new book, “How to Make Money in Markets,” and feels it is important to teach young investors about the market as many people are in the process of inheriting a large amount of money.
“There are amazing stocks that can change your life for the better, and that can change,” Cramer said.
