CNBC’s Jim Cramer reminded investors to own profitable, recession-resistant stocks instead of concept stocks after major tech stocks tumbled Thursday.
He noted that although the shares have taken a hit, they are still “cool” and stand out among the uninvestable names for two main reasons.
He said that investable stocks “have a definite downside due to dividends and insensitivity to interest rates…and the other reason: they are mature companies that went through a recession before and came out of the other side stronger.”
“If you own the tangible stocks I’ve been highlighting, you have a chance to buy more on weakness. If you’re stuck in the concept stocks I warned you about, you’re going to have a crunch,” he added.
Some of the tech names that have fallen back include Facebook Parent deadAnd the Amazon And the apple. The The rest of the market also declined Investors are looking to the Consumer Price Index for the month of May to shed light on the state of inflation.
Cramer saw today’s declines as an opportunity to remind investors of his mantra for owning stocks.
“As I’ve said over and over again, you want to have companies that make real things that do real things and make a profit in the process, with relatively cheap shares and good dividends or buybacks,” he said. “This group… is losing money, but it’s on hold.”
Disclosure: Cramer’s Charitable Trust owns shares in Apple, Amazon, and Meta.
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