CNBC’s Jim Cramer advised investors not to abandon their traditional, stable stocks after Tuesday’s trading session.
“It’s very easy to panic at the first sign of weakness,” he said, adding, “I urge the opposite.”
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The Dow Jones Industrial Average and the S&P 500 fell on Tuesday as weaker-than-expected bank earnings ended a four-day winning streak. The Nasdaq Composite was the only major index to end the day’s session.
So far, the high-tech Nasdaq has led the year with a 6.01% gain, with the gain driven by Wall Street’s hopes that signs of inflation softening mean growth stocks are headed for a better year.
Cramer reiterated his stance that investors should not rush into tech stocks, warning that most companies have not taken the cost-cutting steps needed to keep their stocks strong of late.
He added that Tuesday’s losses represent an opportunity to buy another group of shares.
“I’m still more partial to these traditional cyclical stocks. You have a chance to buy them before, which I believe will be the best comparison of income than you will see from the technologies,” he said.