The one and only solution to the coronavirus (COVID-19) pandemic is scientific and it's impossible for businesses to merely "snap their fingers" and expect customers to flock back, Jim Cramer said Tuesday on his daily "Mad Money" show.
The iconic notion of the "only thing to fear is fear itself" can't apply to the current status quo because there are legitimate health reasons to be fearful, Cramer said. Specifically, the world should be concerned with a novel coronavirus with a "disturbingly high" death rate.
As such, there is no amount of money the government can pump into the economy that can stimulate the economy until the virus problem is resolved.
Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.
Why It's Important
If baseball season returns back to its normal form, fans will be concerned with attending crowded stadiums, and forget about flying to watch their favorite team since it requires a stay at a hotel. Under this scenario, the economy will bounce back but it will certainly resemble a "U-shaped recovery." In the absence of a scenario where there is a "V-shaped recovery," investors should sell into strength and "put some money to work" after weakness.
A "V-shaped recovery" is simply "not going to happen" even though America is a "strong country" and the scientific community will figure out how to treat and eradicate the disease, Cramer said.
Photo courtesy of Tulane University.
See more from Benzinga
- Cramer Cautions Against Buying After Monday's Rally
- Yellen Says Unemployment 'Probably' Up To 12%-13%, Favors Banks Suspending Buybacks
- Leon Cooperman, Others Weigh In On Whether The Stock Market Has Hit Bottom
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.