TBEN’s Jim Cramer told investors not to throw away their traditional stable stocks after Tuesday’s trading session.
“It’s so easy to panic at the first sign of weakness,” he said, adding, “I’m arguing the opposite.”
The Dow Jones Industrial Average and the S&P 500 fell Tuesday on weaker-than-expected banking income, ending a four-day winning streak. The Nasdaq Composite was the only major index to end the day.
The tech-heavy index is leading this year at 6.01%, with gains driven by Wall Street’s hopes that signs of declining inflation mean a better year is ahead for growth stocks.
Cramer reiterated his position that investors shouldn’t rush into tech stocks and warned that most companies have not taken the cost-cutting measures necessary to make their stock’s recent runs sustainable.
He added that Tuesday’s losses are a buying opportunity not for technology, but for another group of stocks.
“I remain more in favor of those traditional cyclical stocks. You get the opportunity to buy them before what I think will be better earnings comparisons than you’ll see from technology,” he said.
