At the theme park, roller coasters mean summer thrills, and Jim Cramer told his
"RealMoney" radio show listeners Tuesday that they're in for a summer-long roller coaster ride on Wall Street.
"We just had the first steep drop in a long ride, and like on a roller coaster, we'll probably end up in the exact same place we started," said Cramer.
He said to think of stocks as a coiled spring, saying that last week's gains were due in large part to the fact that stocks had sold off so much. Like coiled springs, they had to unwind and move higher.
But the market's fundamentals didn't really change, he said. So on a day like Tuesday, when market leaders like
get hammered, it will weigh on stocks.
Even though he likes GM, he did agree with a Deutsche Bank analyst who changed his rating on the stock to sell from hold because of the effect of rising gasoline prices. As for Wal-Mart, last month was good and this month was bad, he said. And when Wal-Mart says business is bad, analysts worry that things are getting slow nationwide because the retailer services so many customers.
He added that the
is also part of the problem, and that the markets are going to fluctuate wildly leading up to the central bank's June 28 meeting. As these bankers try to figure out what they'll do, and with Fed speakers deliver a variety of messages, the market will jump up and down, he said.
And the selloff in the world's hottest markets, Brazil and India, is also rattling stocks at home, Cramer added.
The roller coaster is here to stay, he said, and the only way to avoid motion sickness is to have a diversified portfolio, he said.
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