On Tuesday, CNBC’s Jim Cramer informed investors to look out for the losers since there are many of them. The best place for your funds, at present, is tech; otherwise, move cautiously.
“You stray, you lose,” warned Cramer. “That’s the defining feature of this market, because if you stray from a small portion of the tech complex, you’re gonna be destroyed.”
The sectors observing losses currently entail energy, utilities, healthcare, real estate, consumer staples, materials, industrials and even banks, especially local ones.
“It’s a who’s who of artificial intelligence and friends, a cornucopia of companies that benefit from extremely fast semiconductors, with just a small smattering of winners amid a host of losers,” Cramer mentioned.
According to Cramer, the government is undermining healthcare. Companies like Moderna and CVS have declined in the wake of COVID. As remote work continues, office property owners such as Boston Properties and Alexandria Real Estate are suffering massive losses. Industrial firms such as government consultancy Leidos are down due to mounting concerns that the debt ceiling agreement would result in military budget cuts.
To Cramer, tech is only immune to this general instability due to the miracle of generative AI.
Even Cramer worried if this discrepancy could last, telling investors Tuesday morning that he sold some tech stock for the CNBC Investing Club Charitable Trust.
“We just feel too darned greedy not to take any profits in tech,” he stated. “That said, though, straying from tech might continue to be the kiss of death in this market, at least until we get a cooling in the trillion dollar colossus that is Nvidia, the undisputed leader of 2023.”
