CNBC’s Jim Kramer said on Monday that Wall Street appears to be shifting from winning technology stocks to lagging parts of the market, while also detailing investor rotation strategies.
“This morning, the gap between the Nasdaq Index and the S&P 500 Index finally became so untenable that fund managers, at least some big fund managers, decided to , They have to make a profit in technology stocks and then switch to something else,” Cramer said, as he tried to explain why the Nasdaq index set an intraday record on Monday, then reversed the trend and closed 1.26% lower.
The “Crazy Money” host said that he expects this move to work within a few days, which shows that investors must refrain from buying technology stocks and bet that they will immediately fight back.
“I would rather find companies that have performed well in the earnings season but have been unfairly trampled on in the past few weeks because they are not part of the Nasdaq stampede. This way you can rely on the fundamentals-those that are still important-and Buy if they eventually go lower, there will be more,” he said.
The following are the stocks that Clays defaults to meet the criteria:
Kramer said that the investment bank “did well during this period, but due to the idling of financial stocks, the stock has been crushed” and its current price-to-earnings ratio is only 12 times. “if Morgan Stanley’s stock keeps falling, I’m confident I will tell [CNBC Investing Club] Members continue to buy it because it is too cheap. “
Cramer said the health insurance company is repurchasing a large number of stocks and is trading at a low price at a price-to-earnings ratio of only 14 times. He said Centene would also benefit from any Medicare or Medicaid benefit expansion supported by the White House.
Johnson & Johnson
Kramer said that compared with the yield on US Treasury bonds, he likes the pharmaceutical giant’s 2.6% dividend yield. He believes Johnson & Johnson’s plan to split its consumer products division into an independent company is wise.
“The remaining pure drug business will become the fastest-growing large pharmaceutical company in the universe. It should become an immediate market weapon,” he said.
Cramer said that express delivery companies play a key role in e-commerce sales growth, and management has expressed confidence in the strong holiday. “With the roar of the railroad tracks, I think UPS is on fire now, and this fire will burn for days or even weeks before the Christmas holidays,” Kramer said.
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