Jim Cramer’s advice to investors: don’t exit the market entirely

• Cramer: Panic selling is not a solution
• Long-term investments can be worthwhile
• A balanced portfolio pays off

In his program “Mad Money” on CNBC, the well-known investor Jim Cramer describes the current economic situation – as usual visually stunning – as difficult, but not hopeless.
There is no risk for the economic system itself due to inflation and the Ukraine war, so investors should appreciate long-term investments and not throw their portfolios out of fear in the short term, according to the moderator. He sticks to his principle that companies that operate profitably are also good investments. Even if the market has become more difficult, it is a mistake to sell everything, Cramer continues. Investors should part with some investments, but not empty the portfolio completely. Because when finding the right time to re-enter, speed is required, which not every investor has.

Bear market for tech stocks

Cramer currently sees a bull market on the one hand, but also a bear market, which he described as “a real grizzly”. Consumer goods and pharmaceutical stocks would do well as the Fed tries to curb inflation. However, this is not the case for the large tech and semiconductor stocks.

It’s been a brutal sell off of big tech and the semis but there are so many non-tech stocks that are getting very attractive

– Jim Cramer (@jimcramer) April 11, 2022

Cramer currently sees no positive signals for the big tech stocks, but advises against kicking all tech stocks out of the portfolio. Most recently, Cramer advised buying the so-called FAANG shares and found many positive words for each of these companies. Cramer once popularized FAANG as an acronym for the most important US tech stocks Meta (Facebook), Amazon, Apple, Netflix and Alphabet (Google). These tech stocks dominated for a long time and were considered the darlings of the stock market.

No overweight in the portfolio

While Cramer predicted an imperative rally for investors with a very high exposure to tech stocks, his advice to investors was “You need to be positioned so that you are not overweight anything except maybe oil.”
Investors should turn to the “money centers” instead. The expert from “Mad Money” means oil companies, retail chains, health insurers and pharmaceutical companies (not biotech): companies that operate solidly and pay good dividends, because according to Cramer dividend stocks offer the best protection against inflation.

Editorial office finanzen.net

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