Arabic version: كرامر يرى أصداء عام 2018 في السوق الحالية

According to Cnbc, Jim Cramer said a combination of rising oil prices, stubborn inflation and higher interest rates is sending a warning signal to investors entering the final months of the year. The “Mad Money” host said the current market has “eerie similarities” to the fall of 2018, though he does not expect history to repeat exactly.

Cramer identified parallels between 2018 and 2026: stocks registered strong gains in the second year of President Donald Trump’s term, oil prices and Treasury yields climbed, inflation stayed above the Federal Reserve’s target, and a new Fed chair considered further rate increases.

In late 2018, the S&P 500 dropped roughly 20% from its late-September high through Christmas Eve. Investors then faced concerns about rising rates and escalating trade tensions with China. Cramer said comparable pressures are visible now, with oil near $100 a barrel, the 10-year Treasury yield approaching 5%, and inflation still above the Fed’s target.

Those conditions have increased pressure on new Fed Chairman Kevin Warsh as investors anticipate a possible rate hike. Still, Cramer said Warsh appears less aggressive in fighting inflation than former Fed Chair Jerome Powell was in 2018. He also said investors are more familiar with how Trump responds when his policies put pressure on markets.

Rather than calling for investors to sell everything, Cramer recommended preparing for possible volatility. Investors worried about a repeat of 2018, he said, could trim winning positions and maintain cash balances. That approach, he said, could allow them to buy high-quality stocks if market weakness emerges without panicking.