CNBC’s Jim Cramer said Wednesday that while the hot consumer price index suggests the Federal Reserve losing in its fight against inflation, the poor performance of stocks, particularly in the Russell 1000, offers a different view.
“When I talk about the Fed’s victory or defeat in the fight against inflation, I mean the struggle to reduce costly spending by allowing excessively tight supply chains to catch up, relieving some of the strain on the labor market.”crazy money“said the host.
“When you look at the IPO market crash and see the Russell 1000 stock … we are seeing the destruction of the most extreme wealth we have seen since the dotcom crash in 2000,” He said. “That’s exactly what the Fed needs for another day when a government inflation figure is damn hot,” he added later.
Cramer’s comments come after the Bureau of Labor Statistics reported Wednesday that the consumer price index gained 8.3% yoy, remaining close to a 40-year high.
To illustrate his point, Cramer showed a list of worst performers in the Russell 1000 put together by CNBC statistic Gina Francolla.
“All this destruction of wealth makes those stocks the trump cards [Fed Chair] Jay Powell’s “fight to control inflation,” Cramer said. “The losses in these names represent the extra holidays, the new roof, the luxury dinner. … These losses slow the economy down.”
Here is Cramer’s list of the worst-performing companies in the Russell 1000:
- unit software
- You Simple
- Flowing Energy
“This is a gallery of rogue losers that is expanding every day … Same with almost all IPOs and SPACs. Their downturns are part of the fight against inflation,” Cramer said.