Jim Cramer expects further market declines, says investors can be patient

Published Mon, Jul 19 20219:38 AM EDTUpdated Mon, Jul 19 20214:27 PM EDT

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

CNBC's Jim Cramer said investors who want to take advantage of Monday's market declines can likely be patient, suggesting further room for stocks to fall. "You have to deal with all these analysts who are suddenly discovering that the market is coming down and blaming the delta variant," Cramer said on "Squawk Box" before Monday's opening bell as Dow Jones Industrial Average futures implied an opening decline of more than 500 points. "But meanwhile, the people who don't want to get [vaccinated] aren't going to get vaxxed." Indeed, the Dow slid 500 points as the market opened. It closed down 725.81 points, or 2.1%, in its worst drop since October. "Let it come down," Cramer added, predicting stocks could pull back around 3% to 5% as a result of the negative sentiment currently hitting Wall Street. Stocks that benefit from a smooth economic reopening, such as cruise lines and airlines, were among Monday morning's biggest losers. For example, Cramer pointed to Royal Caribbean shares, which were down nearly 4%. "I look at the cruise ships and I'm saying, did people just notice they're coming down?" Cramer said, noting Royal Caribbean was already down more than 20% since June 1. "The only thing that hasn't rolled over is FAANG, and FAANG gets rolled over last," Cramer said, referring to the cohort of mega-cap technology stocks Facebook , Amazon , Apple . Netflix , and Google-parent Alphabet . Some on Wall Street also include Microsoft in the group. "I want to see FAANG go down," Cramer said, contending that's a key indicator for investors to watch regarding overall sentiment and could suggest a nadir in negativity. In general, the "Mad Money" host said long-term investors should be able to look through any near-term delta variant concerns. "I just think that where we are is there's just so much fear in the market. … I'm not buying that this is the end of the bull market," he added. Cramer also said the continued decline of the 10-year Treasury yield , which fell as low as 1.212% Monday morning, is making dividend-paying stocks more attractive. Yields move inversely to prices. "I think it's time to start thinking about the companies that have a 3% yield. When you've got this kind of yield … give me 3%," he said.

Jim Cramer

Scott Mlyn | CNBC

CNBC's Jim Cramer said investors who want to take advantage of Monday's market declines can likely be patient, suggesting further room for stocks to fall.