Cramer says he likes stocks in these 4 industries more than tech stocks right now

CNBC’s Jim Cramer on Tuesday offered investors a list of industries they should look at when managing their portfolios.

Here is his list:

  1. Industry
  2. products
  3. pharmaceuticals
  4. Oils

“Why be lazy when you can invest in stocks of companies that have a lot of money? I think it’s a lot better than sifting through the scraps of tech just because their stock has dropped a lot,” he said.

Technology stocks have suffered this year from persistent inflation, interest rate hikes by the Federal Reserve, Russia’s invasion of Ukraine, and lockdowns in China.

While some tech firms remain profitable and their stocks look good, Kramer said, investors are better off positioning themselves elsewhere. His advice Tuesday echoed his call last month for investors to buy recession-resistant stocks rather than hold on to struggling tech companies.

“Their stocks have dropped so much that people think, ‘Well, they can’t go any lower.’ But this is not true. It can always fall lower until it hits zero,” he said.

He added that while stocks have indeed fallen enough to make holding them less risky than it would have been earlier this year, tech companies need to rethink their priorities before their stocks start to recover.

“They won’t be truly risk-free until management decides to move from a growth-at-all-costs mindset…to a profit-at-cost mindset,” Cramer said.

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