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Jim Cramer advises that we should not forget FAANG and put our focus on value stocks given the current inflationary climate.

Jim Cramer advises that we should not forget FAANG and put our focus on value stocks given the current inflationary climate.

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.

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