CNBC’s Jim Kramer on Monday advised investors to stay away from Big Tech and other rising stocks that could be hard hit as the Federal Reserve raises interest rates.
“For the time being, I think most of us should forget about FAANG and focus on finance centers. Oils. Retailers with extraordinary scale. Health insurers. Big pharma – and when I say big pharma, I mean only big pharma, not biotech at all. , Because they lost in a high inflation environment, “said the host.
FAANG is an acronym for Facebook-Guardian Meta, Amazon, Apple, Netflix and Google-Guardian Alphabet.
The tech-heavy Nasdaq Composite fell 2.18% on Monday while the Dow Jones Industrial Average fell 1.19%. The S&P 500 is down 1.69%.
Kramer’s comments came as he said last week that investors should be conservative with FAANG stocks because the market leads to an environment that is not conducive to high-growth names.
He added that investors should not sell all of their technological growth names, even if the market is not favorable for stocks in the near term. He warned that investors should move strategically with technology-laden portfolios.
“Those who have a lot of technology need a bounce to restore. I think you’re going to get it. কারণে You have to be able to stand on anything without excess weight, except oil, because of the industry’s new discipline in drilling,” he said.
Disclosure: Kramers Charitable Trust owns shares in Alphabet, Apple, Amazon and Meta.