Global Courant
CNBC’s Jim Cramer told investors Monday that the market is ripe with untapped potential.
“If you look underneath, this market isn’t as concentrated,” Cramer said. “We have a lot of winners outside of technology, which means it might be healthier than you think, even though we could still go under if we get some tough data tomorrow or if the Fed says something bad.”
Though he’s by no means suggesting that viewers like the “Magnificent Seven” tech hitters Apple and Facebook parent metahe said he sees a broader market that has room for other sectors to roar alongside Big Tech.
One sector that caught Cramer’s attention is residential construction in particular lennar, DR Horton And Pulte, all of which have reached new highs despite Federal Reserve rate hikes hurting the industry as a whole. Cramer noted that while industry is only 10% of the economy, it historically “punches well above its weight”.
He also looks at industrial companies such as Boeing and General Electric, as well as smaller players that may be poised to follow industry leaders, such as an energy management company. Eaton or manufacturer Emersonwhose shares are owned by Cramer’s Charitable Trust.
“A lot of the profits in this market are indeed concentrated in a handful of huge tech companies altogether. But that’s simply because those companies are so big. Big market cap. Their collective strength masks all the positives I’m talking about,” said Cramer.
Cramer warns against being fooled by those who advise against deviating from tech giants, as well as from stocks in general that are doing well right now, because that way you never ask the winners comes.
“Here’s the bottom line: There’s no denying the power away from technology,” Cramer said. “It’s time to open our eyes to what’s really happening, instead of being blinded by the big-cap tech light.”
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Disclaimer: The CNBC Investing Club Charitable Trust holds shares of Apple, Meta, and Emerson.
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