TLDR
- Jim Cramer says investors who stayed invested over the past four years have been rewarded.
- The S&P 500 has risen about 118% since its Oct. 12, 2022 low.
- A $10,000 investment in the S&P 500 at that low is now worth nearly $23,061, according to Cramer.
- Nvidia is up about 1,875% and Meta Platforms is up 488% over the same period.
- JPMorgan data shows missing the 10 best trading days from 2005 to 2024 left an investor with less than half the wealth.
CNBC host Jim Cramer says investors who stayed in the market over the past four years have been rewarded. The S&P 500 has risen about 118% since it hit a low on Oct. 12, 2022.
The gains came through steep Federal Reserve rate hikes, a banking crisis, broad tariffs and the war in Iran. The rally began when many people were worried about inflation and the economy.
Cramer shared his view on the “Mad Money” show. “The real lesson is that there never seems to be a good time to invest, because bad things do happen quite regularly, and yet investing is a superior way to get a return,” he said.
What a $10,000 Investment Would Be Worth
Cramer said $10,000 put into the S&P 500 at the October 2022 low would now be worth nearly $23,061.
Some stocks did far better. Nvidia shares have jumped about 1,875% over that time. A $10,000 investment would now be about $197,505.
Meta Platforms rose 488%. The same $10,000 would be worth more than $58,800.
Cramer’s Charitable Trust, the portfolio run by CNBC’s Investing Club, owns shares of both Nvidia and Meta.
Why Cramer Says Not to Time the Market
Cramer said the main lesson is not about finding the next market leader. It is about staying invested through uncertainty instead of trying to time each drop and recovery.
“We could not have predicted either the big declines or the big rebounds,” he said. “We could’ve turned tail so many times in these four years. And we would’ve been all the poorer for it.”
JPMorgan data shows the cost of missing market gains. An investor who put $10,000 into the S&P 500 and missed its 10 best trading days from 2005 to 2024 ended up with less than half the wealth of an investor who stayed fully invested.
Cramer discussed his approach in his Sunday column for Investing Club members. Club analyst Zev Fima followed up Monday with a story that includes an investment calculator for compound interest.
“Stay in, keep buying, don’t lose faith,” Cramer said in closing.
Last week, Cramer said investors who want exposure to artificial intelligence could look at large tech firms. He named Meta and Microsoft as two that can benefit in several ways.
In chips, he pointed to Advanced Micro Devices and Intel. He also named Marvell Technology, CrowdStrike and Palo Alto Networks.
Markets ended mixed on Monday. The SPDR S&P 500 ETF Trust fell 0.06% to $778.10, while the Invesco QQQ Trust fell 0.70% to $746.04. The State Street SPDR Dow Jones Industrial Average ETF Trust rose 0.35% to $517.91.
Nvidia closed down 1.29% at $226.32 on Monday, while Meta rose 3.38% to $742.96. Year to date, Nvidia is up about 21.35% and Meta is up about 12.55%.
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