CNBC’s Jim Cramer urged investors not to dump their traditional steady stocks after Tuesday’s trading session.
“It’s so easy to panic out of stocks at the first sign of weakness,” he said, adding, “I would argue the opposite.”
The Dow Jones Industrial Average and S&P 500 fell Tuesday on weaker-than-expected bank earnings that ended a four-day winning streak. The Nasdaq Composite was the only major index to close that day.
So far, the tech-heavy Nasdaq is up 6.01% year-to-date, with gains fueled by Wall Street hopes that signs of easing inflation mean a better year is on the horizon for growth stocks.
Cramer reiterated his stance that investors should not rush into tech stocks, warning that most companies have not taken the necessary cost-cutting steps for the recent rise in their shares to be sustainable.
He added that Tuesday’s losses present a buying opportunity for another group of stocks.
“I remain more biased towards these traditional cyclical stocks. You have an opportunity to buy them before I believe these will be better earnings comparisons than you will see from tech,” he said.
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