With the start of the second quarter, CNBC host Jim Cramer warned against investing in technology stocks and healthcare stocks.
what’s happening: Kramer said he is optimistic about industrial and banking stocks, and recommends that investors pay attention to the cyclical stocks of prosperity and depression while the economy is booming.
Kramer said on CNBC’s “Crazy Money” program: “With the arrival of the second quarter, I think this market will become more friendly to industry and banks…the enthusiasm for banks and technology and healthcare is even lower. .”
Supplier of steel products touted by Kramer Cleveland Cliff Company. (NYSE:CLF) as the winner of the second quarter.
According to Cramer, the company is increasing the number of people attracting capital from large fund investors who no longer use technology stocks, such as Amazon. (Nasdaq stock code: AMZN), Apple. (NASDAQ: AAPL), Zscaler Inc. (NASDAQ: ZS) and ServiceNow Inc. (New York Stock Exchange: now). So far, the stocks of these four technology companies have fallen by 5% to 1
Cleveland-Cliffs (Cleveland-Cliffs) stock rose nearly 17% during Wednesday’s trading hours after the company provided the latest financial guidance for the first quarter, second quarter and fiscal year 2021. The company will announce its first-quarter earnings on April 22.
Clay tacitly assumes that money managers are interested in companies that can bring the biggest surprises and are not interested in the most exciting long-term growth stories. He also pointed out that as the momentum of economic growth intensifies, the inflation rate may destroy the stocks of companies that represent future growth.
See also: Overview of Return on Capital Use: Cleveland-Cliffs
Why it matters: The US stock market rose on most Wednesdays on the last day of the first quarter. The S&P 500 Index rose 0.4%, the high-tech Nasdaq Composite Index rose 1.5%, and the Dow Jones Industrial Average fell 0.3%. However, Kramer called the Nasdaq Composite Index’s rise a “false rebound.”
Although technology stocks rose strongly during the pandemic last year, investors are now shifting their focus to recovery and cyclical stocks due to increased optimism about government spending and Covid vaccination.
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