CNBC’s Jim Cramer on Tuesday stressed the importance of changing market strategies when the market shifts, saying right now the market says to buy beaten-down tech growth names.
“Many tech companies that make real things and return capital to shareholders now do sell at reasonable prices after the tsunami of selling. … I’m talking about amazing semiconductor and software companies, especially Nasdaq names that are doing so well, including internet names,” the “Mad Money” host said.
“When the facts change, I do change my mind, and right now the facts are a lot less hostile to the beaten-down high-flyers. At least for the moment. … There are lots of tech companies that now return capital to you and are at reasonable prices and are going to have very good growth. They exist again,” he later added.
Stocks had a bumpy path on Tuesday as the major indices teetered between gains and sell-offs. The Dow Jones Industrial Average slipped 0.26%, while the S&P 500 rose 0.25%. The tech-heavy Nasdaq Composite gained 0.98%.
The 10-year Treasury yield note pulled back below 3%, after reaching the highest level since 2018 a day earlier.
“I don’t know if Treasury yields will actually keep heading lower. .. I do know that the stock market’s gotten over-sold to the point where even a couple days of calmness in the bond market can actually create some nice action in stocks,” Cramer said.
He also stressed the importance of knowing when to change strategies to fit the tide of the market —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’ve got to take your cue from bonds, and bonds have changed direction,” he added.