Business

Jim Cramer says invest in companies that will “think twice” about hiring during the Fed’s mandated slowdown.

CNBC’s Jim Cramer on Wednesday advised investors to buy shares of companies that are adjusting their hiring efforts to match the economic environment.

“If you want to invest in wasteful companies, be my guest. I want to invest in well-managed companies…with very smart leaders. This means buying shares of companies that will think twice about continuing to hire in this environment,” he said.

The Mad Money host’s comments come after Google told employees via email that it would suspend hiring for two weeks. Information. Last week, Alphabet’s parent company said in a memo to employees that it plans to slow its recruitment pace next year, citing economic difficulties.

Alphabet shares ended slightly higher on Wednesday.

“It’s still funny that someone goes crazy because of these stories. These stories are about hiring slowdowns, as unfortunate as they are… When you hear “Fed-demanded slowdown,” it means fewer hirings and more layoffs,” he said. said.

The Federal Reserve raised interest rates this year to curb skyrocketing inflation, raising fears of a looming recession. The next Fed meeting is later this month, and investors are expecting a 75 or 100 basis point rate hike after the June inflation data.

Cramer told investors that instead of glancing nervously at big companies and their talent offerings, they should focus on developing a long-term strategy for their portfolios.

“Go long in what you like, or just buy a very good index fund in terms of low cost and hold it. It has been the best form of investing and has historically easily beaten inflation,” he said.

Disclosure: Cramer’s Charitable Trust owns shares in Alphabet.


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