CNBC’s Jim Cramer said Thursday the carnage in tech stocks is masking a bull market in other names.
“We had a very traditional bull market based on the dollar and interest rate highs, both of which are excellent for stocks for a whole bunch of reasons,” he said, adding that “the relentless decline in Teslas and Salesforces and Amazons” obscures it .
Stocks fell on Thursday after the Labor Department reported that initial jobless claims fell to their lowest level since September, suggesting the job market remains hot despite the Federal Reserve’s rate hikes.
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While stocks have taken a hit in recent days, many are still recovering overall, he said. According to Cramer, stocks of companies like Visa, Mastercard, JP Morgan Chase and Boeing bottomed out late last year.
“These giant stocks have made tremendous, fortunate moves over the past few months — what we’ve seen this week is just an orderly pullback to burn off their heavily overbought state,” he said.
Cramer, who insists investors stay away from mega-cap tech names, told investors not to make the same mistake as Wall Street by getting caught up in the decline in tech stocks.
“Let’s remember that there are two tracks out there. The tech track that just can’t seem to catch on and has roots in about 30% of the market and the other track that took hold months and months and months ago,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares in Salesforce and Amazon.
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