Jim Cramer says technology stocks aren’t working, but other sectors, like consumer stocks, drug stocks and the insurers, are still worth owning.
This stock market is making people feel trapped, Jim Cramer told his Mad Money viewers Wednesday, but now’s not the time to sell everything. That’s because no one ever made a dime panicking and not every sector is in bear market mode.
Cramer reiterated his advice that if you invest in companies that make things, sell them at a profit and return some of those profits to shareholders, you’ll do just fine. Sure, technology stocks aren’t working, but other sectors, like consumer stocks, drug stocks and the insurers, are still worth owning.
How can Cramer be so bullish? First, he said there’s no significant systemic risks to the market, as there was in the financial collapse of 2008. Next, while stocks are going down in value, there’s still value there, especially in the long term. Investors should feel grateful for what they own. Lastly, very few investors are nimble enough to sell stocks and get back in at lower levels. That means the best strategy is often to sit tight and wait out the decline.
People that tell you to sell everything in times like these are wrong, Cramer concluded. There’s still value in what you own and value in sticking to your convictions.
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