Even after their gains on Monday, CNBC’s Jim Cramer told investors to stay away from tech stocks.
He said, “Just remember, if you were buying tech here off some weaker macroeconomic numbers, you’re not investing, you’re simply gambling.”
On Monday, the tech-heavy Nasdaq Composite gained for the second day in a row after new economic data from the previous week raised expectations that inflation is relaxing and the Federal Reserve will ease its rate surge.
The Dow Jones Industrial Average and S&P 500 plunged, though profits in the latter’s information technology sector helped reduce the deficit.
“These short-term sector rotations like we saw today are irrelevant because they can’t last. Think renters, not owners. The fundamentals, now they last,” he said.
In other words, tech stocks remain overestimated in a market that will keep up with pain, despite its recent gains, Cramer explained. In addition, he said that when tech companies report earnings, they will have to lower their expectations, causing their stocks to fall.
Cramer repeated that investors should stock up on recession-resistant stocks in industries like health care, industrials, oil, and aerospace.
“They were clobbered by the end of the day, and I think many of them represented some great [buying] opportunities,” he said.
- Published By Team Nation Press News