CNBC’s Jim Cramer urged investors to stay away from tech stocks even after their gains on Monday.
“Just remember, if you’re buying technology here from weaker macro numbers, you’re not investing, you’re just playing,” he said.
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The tech-heavy Nasdaq Composite marked its second day of gains on Monday, after new economic data from the week before raised hopes that inflation is slowing and the Federal Reserve may slow its pace of rate hikes.
The Dow Jones Industrial Average and the S&P 500 both fell, although gains in the latter’s information technology sector helped minimize losses.
“These short-term sector rotations like we’ve seen today – they’re irrelevant because they can’t last. Think of tenants, not owners. The fundamentals, now they hold,” he said.
In other words, technology stocks remain overvalued in a market that will continue to suffer despite its recent gains, Cramer explained. He said tech companies whose shares have soared will likely need to lower expectations when reporting earnings, meaning their stocks will fall.
Cramer reiterated his stance that investors should stock up on recession-resistant stocks in sectors like healthcare, industrials, oil and aerospace.
“They were floored at the end of the day and I think a lot of them actually represented some greats [buying] opportunities,” he said.
https://www.cnbc.com/2023/01/09/jim-cramer-warns-not-to-gamble-on-tech-stocks-despite-recent-gains.html Jim Cramer warns against “gambling” tech stocks despite recent gains.