Investors who have long time horizons should continue to take advantage of the stock market’s pullback due to coronavirus fears, National Economic Council Director Larry Kudlow told CNBC on Friday.
Kudlow, formerly a longtime CNBC commentator, said he believes it is smart investing strategy because the U.S. economy is “sound,” despite the market’s recent steep declines and concerns of potential coronavirus-induced recession.
Kudlow’s comments come as stocks continue to fall on Friday even after a strong February jobs report.
Kudlow made similar comments on CNBC last week, arguing that “the virus story is not going to last forever.”
Since he first said on Feb. 25 that long-term investors should “very seriously” think about buying the dips in stocks, the Dow has lost another almost 1,000-points as of Thursday’s close.
Friday’s early declines extended a deep rout for stocks, adding to the Dow’s Thursday loss of 969-points. However, the Dow was actually tracking for about a breakeven week because of huge gains on Monday and Wednesday.
“Most people are savers, they should want the market to go down. They should want to buy at a lower price,” Buffett said on “Squawk Box” on Feb. 24.
The so-called Oracle of Omaha famously wrote a New York Times op-ed in the middle of the financial crisis that explained why he continued to buy stocks.
“Be fearful when others are greedy, and be greedy when others are fearful,” Buffett wrote at the time.
“He was dead right in 2008, even if his timing — well, let’s just say he was ill-advised — maybe left a little bit to be desired. I think he’s going to turn out to be right this time, too,” Cramer said on “Mad Money.”
“Just, please, if you’re going to buy, buy gradually on the way down,” Cramer added Thursday.
— CNBC’s Yun Li contributed to this story.