On Tuesday, CNBC’s Jim Cramer stressed the importance of changing market strategies when the market changes, saying that right now the market says to buy names of declining tech growth.
“Many tech companies that make real things and give back capital to shareholders are now selling at reasonable prices after the sales tsunami … I’m talking about amazing semiconductor and software companies, especially the Nasdaq names that are doing so well, including Internet names, “the”crazy money“said the host.
“When the facts change, I change my mind, and right now the facts are much less hostile towards the high beaten players. At least for the moment … There are many tech companies that are now giving you back capital and they are reasonably priced and they will have very good growth. They exist again, “he added later.
The actions took a bumpy ride Tuesday as the major indices oscillated between earnings and sales. The Dow Jones Industrial Average slipped 0.26%, while the S&P 500 rose 0.25%. The high-tech Nasdaq Composite gained 0.98%.
The 10-year Treasury yield note fell below 3%, having reached its highest level since 2018 the day before.
“I don’t know if Treasury yields will actually continue to fall … I know the stock market has been oversold to the point that even a couple of lull days in the bond market can actually create a nice action in equities,” Cramer said. .
He also stressed the importance of knowing when to change strategies to adapt to market tides, despite what critics might 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 take a cue from bonds and bonds have changed direction,” she added.