Market Signals to Buy Beaten and Profitable Tech Names
CNBC’s Jim Cramer on Tuesday underscored the importance of changing market strategies when the market changes, saying that currently the market is saying to buy beat tech growth names.
“Many tech companies that make real things and return capital to shareholders are now selling at reasonable prices after the sell-off tsunami. …I’m talking about amazing semiconductor and software companies, especially the Nasdaq names who are doing so well, including internet names,” the “Mad Money” host said.
“When the facts change, I change my mind, and right now the facts are a lot less hostile to beaten high-flyers. At least for now. at reasonable prices and are going to have very good growth. They exist again,” he later added.
Stocks had a bumpy ride on Tuesday as major indexes oscillated between gains and sales. The Dow Jones Industrial Average slipped 0.26%, while the S&P 500 rose 0.25%. The tech-heavy Nasdaq Composite gained 0.98%.
The 10-year Treasury yield rating fell back below 3%, after hitting the highest level since 2018 a day earlier.
“I don’t know if Treasury yields will continue to fall…I know the stock market has been oversold to the point that even a few days of calm in the bond market can actually create some nice action in stocks.” Cramer said.
He also stressed the importance of knowing when to change strategy to adapt to the tide of the market, despite what critics might say.
“I can’t stick to my old views when the data no longer supports them,” Cramer said. “If you want real consistency in this market, you have to take inspiration from bonds, and bonds have changed direction,” he added.