Markets

Kudlow: 'Long term investors should think seriously about buying these dips'

Key Points
  • Investors who have long time horizons should continue to take advantage of the stock market's pullback due to coronavirus fears, Larry Kudlow told CNBC on Friday. 
  • "Long-term investors should think seriously about buying these dips," said Kudlow, who made similar comments last week when the Dow was almost 1,000-points higher as of Thursday's close.
  • Kudlow said he believes it is smart investing strategy because the U.S. economy is "sound."
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White House's Larry Kudlow: 'Long-term investors should think seriously about buying these dips'

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. 

"Long-term investors should think seriously about buying these dips," Kudlow, President Donald Trump's top economic advisor, said on "Squawk on the Street."

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

The Dow Jones Industrial Average dropped about 500-points, or just below 2%, in morning trading. The S&P 500 and Nasdaq Composite fell 2.07% and 2%, respectively.

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.

Kudlow defended his bullish call by pointing to similar advice espoused last week by legendary investor Warren Buffett, who said the market's declines were positive for long-term investors

"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.

CNBC's Jim Cramer, who used to host a CNBC show with Kudlow, said Thursday he also agrees with Buffett's advice for investors who are trying to navigate the market volatility. 

"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.

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CNBC's full interview with White House advisor Larry Kudlow on February jobs and coronavirus concerns

— CNBC's Yun Li contributed to this story.