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Jim Cramer believes conditions are getting bleak for stock market bulls.
On a recent episode of Mad Moneythe CNBC host didn’t beat around the bush about his bearishness. “Things have changed. For the worse,” Cramer warned (1), adding that, “There’s a shroud over this market and you ignore it at your own peril.”
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Although there are multiple clouds darkening the market in Cramer’s mind, the most significant is the latest employment data from the Bureau of Labor Statistics. Unlike what many analysts expected — Cramer included — these numbers were actually pretty good, with total nonfarm payroll employment increasing by 172,000 (2) in May. Although unemployment data is still relatively high at 4.3% (3), it didn’t go up from last month, which is yet another positive sign.
But while this may be “good news” for the overall economy, it’s a bummer for stock investors.
The Fed question
Cramer had pointed out that such high employment numbers mean the Federal Reserve is far less likely to cut interest rates this year. The better-than-expected jobs data is only one part of the equation. Inflation came in at 4.2% for May — the highest level in three years and well above the Federal Reserve’s 2% target (4).
As Cramer expected, Kevin Warsh, nominated by President Trump as the new Chair of the Federal Reserve, held rates steady during the June 17 meeting.
In fact, Cramer was so impressed with these employment numbers that he even suggested a rate hike might be possible, noting on his show that “You could argue we might need a rate hike to cool the economy, not a rate cut to turn the temperature up.”
And Cramer isn’t the only one. CME Group’s FedWatch Tool has a 60.7% probability of a rate hike in October (5).
Apple implodes before SpaceX explodes
It isn’t just the rate cut issue that’s giving Jim the jitters, as he’s also wary that all the recent hype in Big Tech is showing signs of fatigue.
Case in point: Cramer noted how Apple’s stock declined after its 2026 Worldwide Developers Conference. News about Siri’s AI integrations with Google Gemini weren’t enough to wow investors, who sent shares tumbling by about 7% between June 4 and June 10.
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Speaking of Google, Cramer mentioned the $80 billion equity raise (6) parent company Alphabet completed to build its AI data centers as another warning sign. If more Big Tech players like Meta or Amazon use these equity deals to compete in the AI race, Cramer argues it could drain the public markets of the cash they need to push stocks higher.
So, should stock buyers stay on the sidelines?
If you’ve been itching to buy into stocks after recent dips, Cramer encourages a bit of patience. As he recently said on Mad Money, “I am not that bullish. My bullishness can wait. I think you will get a better time to buy than right now.”
The warning comes at a time when markets appear increasingly confident despite several economic pressure points. Though the S&P 500 has climbed more than 9.5% so far this year, the rally hasn’t been a smooth ride (7).
Earlier this month, the index dropped nearly 3% in its worst single-day performance since October 2025. At the same time, the CBOE Volatility Index, often called Wall Street’s “fear gauge,” jumped about 40% as stronger-than-expected jobs data renewed concerns that inflation could remain stubborn (8).
While markets have since recovered some ground, the uncertainty hasn’t disappeared.
Those worried about a potential market pullback can hedge their portfolios against a possible market downturn by spreading their exposure across multiple asset classes.
Invest in inflation-resistant assets
As inflation continues to put pressure on the economy, you may want to consider assets that have historically held up better during periods of rising prices.
Gold has long been viewed as a potential hedge against inflation because it isn’t tied to any single currency or government. Unlike stocks, gold also tends to have a lower correlation with equities, meaning it may not move in the same direction when markets become volatile.
A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.
Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
Add real estate to the mix
When markets feel stretched, consider diversifying into assets that can help protect against a sharp stock market decline. Real estate has historically been one option thanks to its low correlation with equities.
Unlike publicly traded stocks, real estate markets typically don’t experience the same minute-by-minute swings. Rental income can provide a steady cash flow stream, while property values may grow over the long run.
Of course, owning property comes with its own challenges. Managing tenants, covering repairs, and dealing with unexpected expenses can quickly turn real estate investing into a second job.
That’s where platforms like Arrived come in.
Backed by world-class investors like Jeff Bezos, Arrived lets you invest in shares of vacation and rental properties across the country — without the burden of mortgages or managing tenants. And you can get started with as little as $100.
Even better, Arrived distributes any rental income generated by properties to investors monthly, allowing you to potentially set up a passive income stream without the extra work that comes with being a landlord of your own rental property.
The best part? For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.
Those with more capital on hand can get exposure to multifamily and industrial real estate as well.
Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECTwhich gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
Diversify like the ultra-wealthy
The wealthiest investors typically don’t rely only on stocks and bonds. Instead, they spread their money across a range of assets to reduce the impact of any single market downturn.
One alternative asset that has long attracted wealthy investors is post-war and contemporary art. Unlike stocks, art prices generally don’t move with daily market swings, which can make it a potential diversification tool.
Post-war and contemporary art has outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.
Until recently, this world was off-limits. Now, with Masterworksyou can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat.
Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.
It may sound surprising, but more than 70,000 investors have followed suit since 2019.
Moneywise readers can get priority access to diversify with art: Skip the waitlist here.
*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd.
— With files from Eric Esposito
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
CNBC (1), (4), (5); Bureau of Labor Statistics (2), (3); Alphabet Inc. (6); MarketWatch (7); CNN (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
