Global Courant
CNBC’s Jim Cramer preached a clear message on Monday: Keep it simple, stupid.
Cramer urged investors to bide their time and wait for a company’s price to fall before buying. He praised ‘Magnificent Seven’ technology stocks – Amazon, Apple, Alphabet, meta, Tesla, Nvidia And Microsoft – as well as other prominent Nasdaq-listed companies such as Sales team And Adobe.
He also pointed to stocks he thinks show promise but haven’t seen huge gains this year, such as drugmaker Eli Lillywhich is known for weight loss and diabetes drug Mounjaro, and infrastructure giant Caterpillar. Cramer also highlighted beverage and food giant PepsiCotogether with leaders in travel and leisure, Boeing And American Express.
“I think this is a matter of keeping it simple, dumbass,” Cramer said. “With these rules in mind, understand that all of the winners I just mentioned are off limits until you get a market-wide swoon or, at the very least, one of them reports a good quarter and the stock sells anyway because, for some reason, Wall Street is wrong, like Tesla, like Netflix,” said Cramer, referring to stock declines that followed their most recent earnings reports. Both companies have serious long-term potential, he said.
Cramer underlined the idea that investors should be patient and ask themselves exactly what they are after before getting started. He also said investors should determine whether their preferred stocks are overbought, and if so, “forget about it.” But if a company isn’t overbought, Cramer urged investors to wait for a slump following a company’s earnings report, or a market-wide dip.
“Very few concepts are as hard to accept as the one that says, ‘you missed it,'” Cramer said. “We never want to believe we’ve missed out. Unless you’re willing to settle for these low-profit sectors — the have-nots of the market, so to speak — you have to accept that the buying opportunity is long gone.”
Cramer said he knows waiting is hard, but it’s his bottom line.
“You have to wait,” he said. ‘And if these never come in? Then that’s all she wrote.’
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Amazon, Apple, Alphabet, Meta, Nvidia, Microsoft, Salesforce, Caterpillar and Eli Lilly.
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