CNBC’s Jim Kramer advised investors on Monday to put away big tech companies and other growth stocks likely to be hit hard by… Federal Reserve Raises interest rates.
“For now, I think we should forget most FAANG and focus on money centers. Oils. Retailers on a massive scale. Health insurance companies. Big pharma – and when I say big pharma, I mean just big pharma, certainly not biotech, because they losers in a high inflation environment,mad money‘ said the host.
Nasdaq High-Tech Composite on Monday It tumbled 2.18% while the Dow Jones Industrial Average fell 1.19%. The S&P 500 is down 1.69%.
Kramer’s comments come after him He said last week Investors should be conservative with FAANG shares as the market is focused on an environment that does not favor high growth names.
He added that investors should not sell all of their tech growth names, even if the market isn’t right for stocks in the near term. He cautioned that investors with tech-laden portfolios will need to be strategic going forward.
“Those with a lot of technology need a bounce to reposition themselves. I think you’ll get that… you need to be in a position where nothing is weighed down, except for oil probably because of the new discipline in the industry in drilling,” he said.
Disclosure: Cramer Charitable Fund owns shares in Alphabet, Apple, Amazon, and Meta.