On Tuesday, CNBC’s Jim Cramer told investors to stay selective with stocks despite the market’s strong run.
“I just want you to have a real earnings cushion with real redemptions or real dividends – ideally both – and I can’t feel comfortable recommending anything without them,” he said. he declares.
The market rose on Tuesday after Fed Chairman Jerome Powell said the disinflation process was in its early stages during a speech at the Economic Club in Washington, D.C. Stocks initially fell after Powell said that interest rates will have to remain high.
“It’s insane that so many people seem to believe the Fed will go from curbing the economy to throttling the economy in a matter of months,” Cramer said.
But he acknowledged that despite his belief that the market is in bullish mode, investors shouldn’t take the lead in investing in untouchable tech names. Instead, investors should look to buy stocks in “rational, traditional companies”, he said.
“What matters here is that you understand the difference between hype and hope versus cold hard reality. I like industrialists like Du Pont Or Linde because they are all related to reality,” he said.
Disclaimer: Cramer’s Charitable Trust holds shares in Linde.
