Jim Cramer Reminds Investors to Diversify Your Portfolio

CNBC’s Jim Cramer told investors on Wednesday that diversification remains key to maintaining a successful portfolio.

“I cannot say that a diversified portfolio is bulletproof. But I can say that it’s easier to stay in the game with him when one particularly popular band goes through a meat grinder,” he said.

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The Nasdaq Composite and S&P 500 closed lower on Wednesday as investors digested the latest corporate earnings data. The Dow Jones industrial index rose slightly towards the end of the trading session.

Tech stocks tumbled on concerns over a softer-than-expected outlook from Microsoft, extending the Nasdaq’s losses for a second day in a row.

The recent decline came after a strong start to the year for the high-tech index, as hopes that the Federal Reserve could ease the pace of interest rate hikes sent investors back into growth stocks.

“Honestly, if you have too much information about technology, when you have a day like today, you can just say that’s it, I’ve had enough, I’m getting out of this racket. That’s why you have to stay diversified,” Kramer said.

He added that he still discourages investors from expanding their tech positions even after the recent decline. “I want to stay in the game. I don’t want to be knocked out when the tech grim reaper strikes.”

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