- CNBC’s Jim Cramer said Tuesday that Wall Street is currently in a difficult phase of the business cycle, and urged investors to maintain diversified portfolios and prepare for some losses.
- “I’m not telling you to relax. We don’t do that on this show. The average is not that close to the all-time high,” he said. “What I’m saying is we’re about to enter the valley of death here. As long as you have a balanced portfolio, there’s no need to fear evil.”
CNBC’s Jim Cramer said Tuesday that while Wall Street is currently seeing a slowdown in the economy, the Federal Reserve has not yet cut interest rates and we are at a difficult stage in the business cycle. He said it would be wise for investors to maintain a balanced portfolio and be prepared to weather some losses.
“I’m not telling you to relax. We don’t do that on this show. It’s not like the average is that close to an all-time high,” he said. “What I’m saying is we’re about to enter the valley of death here. As long as you have a balanced portfolio, there’s no need to fear evil.”
Kramer listed a few atypical stocks — stocks that don’t depend on the overall health of the economy — to own even as the economy begins to slow. He listed the usual Big Tech high performers, including pharmaceutical stocks Merck and Pfizer, as well as Nvidia, Meta, Alphabet, Amazon and Apple. Kramer said he likes these drug companies’ cancer treatments.
But Cramer said the Fed’s rate cuts could come sooner than some think. So he also suggested investing in companies like Builders FirstSource that are poised to soar when the Fed starts lowering interest rates. The company’s stock price fell on Tuesday after the company’s CEO said on an earnings call that customers are experiencing “affordability issues” amid persistently high interest rates.
“If you put all your money into stocks that need rate cuts to win, you’re going to get slaughtered,” Cramer said. “But if you keep dabbling in technology and drugs, you’re going to be left in the dust when the Fed finally starts cutting rates.”
Meta, Alphabet, Amazon, Apple, Merck, Pfizer and Builders FirstSource did not respond to requests for comment. Nvidia has not commented on Cramer’s remarks.
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