CNBC’s Jim Cramer told investors not to ditch traditional stable stocks after Tuesday’s trading session.
“It’s so easy to panic out of stocks at the first sign of weakness,” he said, adding, “I’m urging the opposite.”
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The Dow Jones Industrial Average and the S&P 500 ended a four-day winning streak on Tuesday on lower-than-expected bank earnings. The Nasdaq Composite was the only major index to close on the day.
So far, the tech-rich Nasdaq has led 6.01% year-to-date, fueled by Wall Street hopes that signs of softening inflation mean better years await for growth stocks. rising.
Cramer reiterated his stance that investors shouldn’t jump into tech stocks, warning that most companies aren’t taking the cost-cutting steps needed to sustain the recent rally in stocks.
He added that Tuesday’s losses represent a buying opportunity for another group of stocks.
“I’m more biased towards traditional cyclical stocks. I get a chance to buy them ahead of what I believe will give a better earnings comparison than technology stocks,” he said. .