Jim Cramer compares current market conditions to 2018 S&P 500 sell-off risks
CNBC's Jim Cramer notes eerie similarities between 2026 markets and the September-December 2018 period, citing rising oil prices and yields near 5% as warning signs.
Jim Cramer of CNBC's Mad Money observed that current market conditions share significant characteristics with the fall of 2018. He highlighted three specific parallels: both periods featured strong stock gains in the second year of President Donald Trump's term, rising oil prices, and inflation above Federal Reserve targets. Additionally, a new Federal Reserve chair was considered for further rate hikes in both instances. Today, oil hovers near $100 per barrel and the 10-year Treasury yield approaches 5%. In the fourth quarter of 2018, the S&P 500 declined approximately 20% from late September through Christmas Eve as investors feared rising rates and trade tensions with China. Cramer stated he does not believe history will repeat exactly but warned investors to trim winning stocks and keep cash reserves. He advised preparing to buy high-quality stocks if markets weaken.
