CNBC's Jim Cramer on Monday said he is anticipating another market sell-off and that investors should refrain from putting more money to work in stocks.
The major averages managed to rebound during the session after Friday's drop, where the Dow Jones Industrial Average tanked more than 600 points on heightened fears of the coronavirus' spread worldwide. Friday's sell-off wiped out the index's gains from the start of the year.
"I don't want you to jump the gun, people. Let's wait for a real dip, the kind we haven't had yet, before we get more bullish on this market," the "Mad Money" host said. "I'm betting that another shoe will drop on this coronavirus outbreak, and I think it might be a mistake to buy before that happens."
The Dow climbed more than 370 points during the trading day before finishing up nearly 144 points to 28,399.81 at the close. Cramer said people were too eager to get back into the market.
An investment in stocks here is a bet on a vaccine, cure or effective quarantine to address the spreading disease that is impacting the global economy, Cramer said. The host suggested it's better to wait until seeing if that is possible before putting more money into stocks.
In the meantime, investors should be building a "much higher cash reserve than normal."
Cramer is waiting for more bad news to come about the coronavirus, and he wants to mull the outcome of Monday's Iowa Democratic caucuses.
"I want to wait until we have at least a mid-single-digit decline in the stock market," Cramer said. "We sold a lot for my charitable trust, [and] I feel good about those sales. I'm ready to buy it back when things settle down."