Search

Bank and cyclical stocks should be bought on the dip, Jim Cramer says - CNBC

keloporan.blogspot.com

In this article

The weakness seen Monday in banks and cyclical stocks will be short-lived, and investors should buy them on the dip, CNBC's Jim Cramer said.

"When you look at the stocks that got hit today, I don't think they're going to stay down," the "Mad Money" host said, noting the "countertrend rally" into stay-at-home names seen during Monday's session "will not have legs."

Darden Restaurants and Norwegian Cruise Lines — names that were hit hard by Covid-related restrictions — dropped 3.5% and 2.3%, respectively. Bank stocks such as JPMorgan Chase and Citigroup each fell more than 1%. Meanwhile, shares of Clorox and Procter & Gamble — two companies that outperformed early in the pandemic — rose 2.6% and 1.6%, respectively.

"The most important lesson today is that this market is fickle, so don't dump ... [these] stocks when they're going down," Cramer said.

Cramer said he expects more upside on the bank and cyclical stocks that pulled back during the session. He also recommended investors look into buying shares of Disney and Boeing, two companies associated with travel and the reopening of the economy.

Cramer added investors can use days like this to trim holdings in lockdown plays and rotate into stocks that can benefit from an economic recovery.

"Sooner or later the rotation will change directions, meaning money will flow back to the great reopening stocks — the banks and the cyclicals — so you want to use days like today, and perhaps tomorrow," Cramer said, "to buy them into weakness while you trim your positions in the lockdown stocks."

Disclosure: Cramer's charitable trust owns shares of Disney and Boeing.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Let's block ads! (Why?)

Article From & Read More ( Bank and cyclical stocks should be bought on the dip, Jim Cramer says - CNBC )
https://ift.tt/31wBFrK
Business

Bagikan Berita Ini

0 Response to "Bank and cyclical stocks should be bought on the dip, Jim Cramer says - CNBC"

Post a Comment

Powered by Blogger.