CNBC host Jim Cramer has outlined potential factors that could lead to further market decline, advising investors to be cautious about their buying and selling decisions.

What Happened: Cramer, during his show “Mad Money,” on Wednesday, highlighted the possibility of the market continuing its downward trend, CNBC reported. He warned investors against making sudden decisions to buy or sell.

He said, “If you want to get out, go ahead. But I would say that the time to sell was when the market was going parabolic. The time to buy is when the parabola finishes, comes down dramatically. We don’t know when that moment will come yet, but at this point, you sure aren’t buying at the top.”

The market experienced a decline on Wednesday, with the S&P 500 recording losses for the fourth consecutive session. The day began with a rise in stock prices, but this was followed by a fall, primarily due to losses from major tech companies such as NVIDIA Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), and Microsoft Corp (NASDAQ:MSFT).

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Cramer pointed out that many stocks have experienced “parabolic moves,” rallying straight up like a parabola and now retracing. He cautioned against aggressive buying, noting that the market is not yet oversold considering its recent performance. He also mentioned that the economy is too strong for the Federal Reserve to consider rate cuts, as some on Wall Street had hoped.

Why It Matters: The recent downturn in the market comes amid concerns about potential rate cuts and escalating tensions in the Middle East. Despite these worries, many experts believe that the bull market will continue, driven by a robust U.S. economy and the potential of artificial intelligence (AI).

Earlier in March, a leading research firm warned that the stock market could be on the verge of a correction, despite the ongoing record-breaking spree. While a bear market was not considered imminent, prolonged market enthusiasm could make it vulnerable to potential corrections.

On a more positive note, the stock market’s long-term bull rally, now in its 11th year, is expected to continue, with the S&P 500 potentially surging by 34% by the end of 2026, according to Bank of America‘s technical strategist, Stephen Suttmeier.

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