Why Jim Cramer thinks it pays to bet on the bulls

CNBC’s Jim Cramer suggested that bull investors usually triumph in the end. He reviewed recent events that have worried many on Wall Street and explained why he thinks it makes sense to stay in the market.

“If you are going to think of the market as a contest between bulls and bears, can you at least consider that the bulls are the favorites and give them the benefit of the doubt?” he said. “Because if history is any guide, the bull deserves it.”

The market is not “lots of coins to flip”,” But it’s “a collection of companies to invest in,” Cramer said.

Cramer said many people are concerned about how the government shutdown will affect the market. But he continued that stocks have performed well despite thousands of public employees being furloughed and economic data delayed. The averages managed to close in the green on Thursday, the 23rd day of the closure. Cramer suggested that historically shutdowns have not had a major impact on the market.

Noting that the consumer price index will be announced on Friday, Cramer encouraged investors not to fall into disaster if the numbers are hot.

Cramer also suggested that fears about tensions between the US and China may be exaggerated. He said that although President Donald Trump often shares his negative views about China, it is seen that he has managed to reach an agreement with China.

Cramer said the first few weeks of earnings season have also alleviated some concerns, noting that tariffs have long been included in many companies’ reports and stock prices. Although investors began to fear about the banking industry after several regional banks disclosed problem loans, Cramer said the major financial institutions reporting so far are seeing low numbers of defaults as a percentage of loans.

“When I started working, I heard those legendary three words that I’ve heard most of my working life, including from my own lips when I got it wrong: ‘Get out now,'” Cramer said. “Since I first heard ‘Get out now,’ the Dow Jones Industrial Average has gone from 1,000 to 46,000.”