Cramer: This market has eerie parallels with 2018. Here's what investors should do — SkimNews
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- Jim Cramer said the current market shows 'eerie similarities' to Q4 2018, citing rising oil prices, stubborn inflation, and higher interest rates heading into the year's final months.
- Cramer drew parallels between 2018 and 2026 — both saw strong second-year Trump stock gains, rising oil and Treasury yields, above-target inflation, and a new Fed chair weighing rate hikes.
- In Q4 2018, the S&P 500 fell roughly 20% from its late-September high through Christmas Eve as investors grew anxious about rising rates and escalating US-China trade tensions.
- Current conditions include oil near $100/barrel, the 10-year Treasury yield approaching 5%, inflation above the Fed's target, and new Fed Chairman Kevin Warsh facing pressure over a potential rate hike.
- Cramer stopped short of predicting another 2018-style collapse, noting Warsh appears less aggressive on inflation than former Chair Jerome Powell was in 2018 and that investors now better understand Trump's market-pressure responses.
- Cramer's advice: trim winning positions and keep cash available so investors can buy high-quality stocks during any sell-off, as the Charitable Trust has been doing.
Why it matters: Cramer's comparison puts a concrete historical benchmark — a ~20% S&P 500 drawdown — next to today's setup of $100 oil, 5% Treasury yields, and a Fed chair weighing hikes, giving retail investors a defined volatility playbook rather than abstract anxiety.
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