CNBC’s Jim Cramer urged investors Monday to reject Big Tech and other growth stock that could be hard hit by the Federal Reserve raising interest rate.
“For the moment, I think we should forget most FAANG and concentrate on the money centers. The oils. Retailers of extraordinary scale. Insurance companies that cover health. Big pharma. When I say big, I mean only large pharma, and not biotech because they are the losers in high-inflation environments,” said the “Mad Money” host.
FAANG is Cramer’s acronym for Facebook-parent Meta. Amazon, Apple and Netflix are all part of the Google-parent Alphabet.
On Monday, the tech-heavy Nasdaq composite fell 2.18% while Dow Jones Industrial Average fell 1.19%. The S&P 500 lost 1.69%.
Cramer’s remarks come after he stated last week that investors should be cautious with FAANG stocks because the market is shifting to an environment that doesn’t favor high-growth companies.
He also said that investors shouldn’t be tempted to sell all of their tech-growth stocks, even though the market isn’t favorable for them in the short term. He warned that investors with tech-rich portfolios need to be strategic in the future.
“Those who have too much tech need a bounce in order to reposition. I believe you’re going get that. He stated that you must be in a position where there is no overweighting to any substance, except oil, due to the industry’s newfound discipline regarding drilling.”
Disclosure: Cramer’s Charitable trust owns shares in Alphabet and Amazon.
