CNBC’s Jim Cramer told investors not to dump their traditional and stable stocks after Tuesday’s trading session.
“It’s very easy to panic about stocks at the first signs of weakness,” he said, adding, “I urge the opposite.”
Related investment news
The Dow Jones Industrial Average and the S&P 500 fell on Tuesday on weaker-than-expected bank earnings, which ended a four-day winning streak. The Nasdaq Composite was the only major index that ended the day.
So far, the tech-heavy Nasdaq is leading the way so far at 6.01%, with gains driven by Wall Street’s hopes that signs of easing inflation mean there’s a better year ahead for stock growth.
Kramer Repeat his position that investors should not rush into technology stocks, warning that most companies have not taken the cost-cutting steps needed to sustain their stock’s recent runs.
He added that Tuesday’s losses represented an opportunity to buy another group of stocks.
“I’m still more biased towards those traditional cyclical stocks. You get a chance to buy them before what I think will be better earnings comparisons than you’ll see from technology,” he said.
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”