CNBC’s Jim Cramer told investors not to dismiss their traditional, stable stocks after Tuesday’s trading session.
“It is easy to sell off stocks at the first sign of weakness,” he said, adding, “I am urging the opposite.”
The Dow Jones Industrial Average and S&P 500 fell on Tuesday on weaker-than-expected bank earnings, ending a four-day streak of gains. The Nasdaq Composite was the only major index to close for the day.
The tech-heavy Nasdaq is leading the year to date at 6.01%, with gains fueled by Wall Street hopes that signs of subdued inflation mean a better year. waiting for growth stocks.
Cramer repeat my stance that investors shouldn’t rush into tech stocks, and warned that most companies haven’t taken the cost-cutting steps needed to keep their stocks sustainable recently. .
He added that Tuesday’s losses were a buying opportunity for another group of stocks.
“I’m still biased over those traditional cyclical stocks. You’re getting an opportunity to buy them ahead of what I believe compares better earnings than you would see from technology,” he said. .
