Cramer offers six reasons why investors should sell their stocks right now

CNBC’s Jim Cramer on Thursday suggested six reasons why investors might sell and take the market down.

“Some of them make sense, some of them don’t. But what you have to realize is that every time the stock market goes down, those reasons to sell become less important,” Cramer said. “That’s what low prices do. They take points like this into account.”

1. interest rates: Prices can be a good reason to sell, Cramer said. If investors believe inflation is falling as interest rates rise, they may want to sell stocks and instead enter the bond market, acquiring longer-term Treasuries for a risk-free return.
2. Macroeconomic weaknessCramer said the “macro” headwinds increase risks for companies trying to close deals and may create a “hard adjustment” for investors. But he also said stocks will fall to make up for that weakness, and once they price in, there will be a return to normal.
3. Fear of giving up gains: Cramer said investors may sell to preserve the gains they made earlier in the year. This tactic may make sense for money managers who are rated on an annual basis but not necessarily for individual investors, he said. According to Cramer, investors who sell out of fear translate into selling low and buying high.
4. Federal ReserveInvestors may be concerned that the Fed “doesn’t seem quite clear,” Cramer said. He added that such amorphous fears are not a reason to sell. Cramer encouraged investors to buy stocks that perform well in inflation and sell them once inflation declines.
5. Political environment: Cramer acknowledged that the Democratic and Republican parties have an “insanely toxic relationship,” but he believes that dysfunction exists in the marketplace.
6. Strikes: Cramer noted that Wall Street may be afraid of the potential ripple effect from a UAW strike, but he doesn’t think it will happen because most American workers don’t belong to unions.

Kramer’s end result?

“The Fed can’t reverse the rally because there is no rally. Higher interest rates won’t cause stocks to fall because they’re already low. That’s the way you have to think about things like the stock market,” he said. “Otherwise, you know what? There’s really no level at which you feel safe owning stocks other than at the top, when no one’s worried about anything. But that’s not investing. That’s called stupidity.”