1667432847 Heres Why Jim Cramer Says Investors Should Stay Away From

Here’s Why Jim Cramer Says Investors Should Stay Away From Software Stocks

Here's why Jim Cramer says investors should stay away from software stocks

CNBC’s Jim Cramer on Wednesday advised investors to stay away from software stocks.

“Data has become fool’s gold. Dates are iron pyrite. If you hear the word data and see a loss, I don’t care what kind of growth the company has, I don’t care what kind of software it owns, it’s bad,” he said.

Stocks fell on Wednesday after the Federal Reserve reiterated its hawkish stance on inflation.

The central bank also hiked interest rates by 75 basis points. The decision follows numbers suggesting the job market remains strong, including hotter-than-expected October personal payrolls data and Tuesday’s JOLTS report.

Cramer said that despite Wall Street hopes that the Fed will end its aggressive rate hikes sooner rather than later, that’s unlikely until both wage inflation and employment slow.

He also reiterated that investors should bet on recession-resistant stocks that can withstand the Fed’s tightening cycle.

“The chance [are] that these companies simply cannot survive [Fed Chair] Jay Powell at the blackjack table. They’re going to go broke,” he said.

Jim Cramer on the importance of the Fed's recent inflation comments for the stock market

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