Trust in the market leads to long-term gains, Jim Cramer says

Monday - Friday, 6:00 - 7:00 PM ET

CNBC’s Jim Cramer on Tuesday stressed his belief that the market can be vehicle for wealth in the long term, suggesting that investors park their money in both index funds and growth stocks.

“We’ve been blessed with a tremendous market here, I know that,” Cramer said. “But it won’t always be. You have to learn to trust the market.”

According to Cramer, it’s wise to have a “bifurcated portfolio,” with half devoted to index funds and the other half into five stocks — including one solid speculative investment and one insurance investment, like gold or cryptocurrency. He suggested a good stock portfolio needs insurance the same way that a house or a car does.

It’s important to put at least a little bit of money away each month, Cramer continued, as well as stay in the market through shorter-term hiccups. He said he recommends investors own good quality growth stocks instead of trading in and out of companies and that they let their gains compound.