Inflation is peaking and it’s ‘nirvana’ for stocks, says Jim Cramer

CNBC’s Jim Cramer on Wednesday said that inflation is peaking, which is good news for stocks that have been trampled in recent months.

“The stock market… totally saw the peak of inflation coming. I think you’ve got to be intentionally ignorant to miss this because because commodity prices have collapsed a while ago, but now undeniably,”Crazy money” said the presenter.

Stocks spiked on Wednesday after Consumer price index revealed that the upward momentum of inflation decelerated in July compared with the previous year. All major stats are upwith the S&P 500 hitting its highest since May and the Nasdaq Composite closing at its best since April.

Cramer says the peak of inflation bodes well for investors looking to buy back shares they may have dropped earlier this year.

“High inflation is nirvana for stocks, especially for those that are out of favor, like the fast-moving tech plays or the financial industry or the whims of people,” he said. consumption. “That means you can buy anything from Microsoft arrive Wells Fargo arrive Target. “

And while this doesn’t mean the economy will come out of the woods when it enters a recession, peaking inflation can help lift stock prices even during a recession, according to Cramer.

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“Some companies will be completely hurt by the coming recession, but others will see their stocks soar because they are worth more in an environment where inflation ultimately,” he said. could be under control,” he said.

Disclosure: Cramer’s Charity Trust owns shares of Wells Fargo and Microsoft.

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