CNBC’s Jim Cramer said Monday that investors willing to brave today’s market should trade their unprofitable holdings for stocks that have cheap valuations and better-than-average growth rates.
“I’m not advocating staying in the market as much as I want you to take some losses and trade them for better stocks that can be recovered because their losses are just collateral damage… The ones that can do things, they send you money back,” he said.bad moneysaid the host.
“I say put some cash to work now on the tangible growth stocks at a reasonable price…As for the high-flying stocks above, if you still own them, I recommend selling them in a snapback and updating your portfolio in something that better suits this difficult time,” he added.
Stocks plunged Monday, with the Dow Jones Industrial Average falling 1.99% while the Nasdaq Composite fell 4.29%. The S&P 500 fell 3.2%, sinking below 4,000 points for the first time in more than a year.
“When [the markets] take out the last of the leaders…in this case, oil and gas stocks, that generally means we’re much closer to the bottom than the top,” Cramer said.
He added that while there are several types of sellers whose activity is currently roiling the market, liquidations by companies and their shareholders who have been forced to part with their shares provide opportunities for investors to acquire shares that were previously expensive at lower prices. cheap. .
“You have to see this as a blessing, not a curse, if you have the cash. These forced sellers put pressure on the entire market, so you can take advantage of them for great bargains… You can get to your preferred levels much more quickly thanks to these vendors because they are creating great value,” he said.
Cramer also warned investors to stay away from speculative stocks and cryptocurrencies.