CNBC’s Jim Cramer on Tuesday emphasized the importance of changing market strategies when the market turns, saying that right now the market says to buy battered tech growth names.
“Many tech companies that make real things and return capital to shareholders are now selling at reasonable prices after the tsunami of sales… I’m talking about amazing software and semiconductor companies, especially the Nasdaq names that are doing so well, including Internet names, “the”bad moneysaid the host.
“When the facts change, I do change my mind, and right now the facts are a lot less hostile to the high-flying downtrodden. At least for the time being… There are a lot of tech companies now giving you back capital and they’re reasonably priced.” and they are going to have very good growth. They exist again, “he added later.
Stocks had a bumpy road on Tuesday while the main indices oscillated between gains and sell-offs. The Dow Jones Industrial Average fell 0.26%, while the S&P 500 rose 0.25%. The Nasdaq Tech Composite gained 0.98%.
The 10-year Treasury note yield fell below 3%, after hitting the highest level since 2018 a day earlier.
“I don’t know if Treasury yields are actually going to keep going down… What I do know is that the stock market has been oversold to the point where even a couple of days of calm in the bond market can generate a good action in actions”. Crammer said.
He also stressed the importance of knowing when to change strategies to suit the market tide, despite what critics say.
“I can’t stick to my old views when the data no longer supports them,” Cramer said. “If you want true consistency in this market, you have to follow the example of bonds, and bonds have changed direction,” she added.