CNBC's Jim Cramer on Thursday made a case for investors to get exposure to companies impacted by the ongoing global chip shortage and stocks benefiting from the rotation into consumer packaged goods.
"I think today was a powerful lesson you need a diversified portfolio with both smokestack [stocks] that use semiconductors … and also defensive food stocks with big dividends," the "Mad Money" host said.
Cramer said Apple, Caterpillar and Ford Motor — whose shares fell in Thursday's session — are worth buying on any declines connected to the low supply of semiconductors. The shortage is being caused by the digital transformation that accelerated during the coronavirus pandemic.
Food stocks like PepsiCo, Mondelez and Hershey are also buys as money managers move into some defensive names, Cramer said. The rise in defensive investments is being fueled by declines in digital and drug stocks on the backs of disappointing earnings results, he noted.
"Even with today's rotation, it's a mistake to sell microchip stocks for the potato chip kind, or even the Chips Ahoy kind," Cramer said, referring to Mondelez. "Give it six to nine months and the … [companies] that need semiconductors will come roaring back."
Disclosure: Cramer's charitable trust owns shares of Apple and Ford.
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