Balanced Portfolio: Jim Cramer’s Advice to Investors: Don’t Get Out of the Market Completely | news

• Cramer: Panic sales are not a solution
• Long-term investments can pay off
• A balanced portfolio pays off

On his “Mad Money” show on CNBC, well-known investor Jim Cramer describes the current economic situation – visually stunning as usual – as difficult, but not desperate.
There is no risk to the economic system itself due to inflation and the war in Ukraine, so investors should appreciate long-term investments and not dump their portfolios out of short-term fear, according to the moderator. He sticks to his tenet that companies that operate profitably are also good investments. Even if the market has gotten tougher, it’s a mistake to sell everything, Cramer continues. Investors should divest some investments, but not completely empty the portfolio. Because when it comes to finding the right time to re-enter, speed is required, which not every investor has.

Bear Market for Tech Stocks

Cramer currently sees a bull market on the one hand, but also a bear market, which he described as “a real grizzly bear.” Pharmaceutical and consumer goods stocks would do well as the Fed tries to curb inflation. However, this is not the case for the big technology and semiconductor stocks.

Cramer doesn’t currently see positive signs for big tech stocks, but advises against taking all tech stocks out of the portfolio. More recently, Cramer advised buying so-called FAANG shares and found plenty of positive words for each of these companies. Cramer once popularized FAANG as an acronym for major US tech stocks Meta (Facebook), Amazon, Apple, Netflix, and Alphabet (Google). These technology stocks long dominated and were considered the darlings of the stock market.

No overweight in the portfolio

While Cramer predicted an imperative rally for investors with very high exposure to tech stocks, his advice to investors was: “You need to be positioned so you’re not overweight anything except maybe oil.”
Investors should turn to “money centers” instead. The “Mad Money” expert is referring to oil companies, retail chains, health insurers, and (non-biotech) pharmaceuticals: companies that operate solidly and pay good dividends, because according to Cramer, dividend stocks offer the best protection against inflation.

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