Kramer explains how to maintain a ‘balanced’ portfolio as economy slows


CNBC Jim Cramer He said on Tuesday that while Wall Street is currently seeing a slowdown in the economy, the Federal Reserve has not yet cut interest rates and we are at a difficult stage in the business cycle. He said it would be wise for investors to maintain a balanced portfolio and be prepared to weather some losses.

“I’m not telling you to relax. We don’t do that on this show. It’s not like the average is that close to an all-time high,” he said. “What I’m saying is we’re about to enter the valley of death here. As long as you have a balanced portfolio, there’s no need to fear evil.”

Kramer listed a few atypical stocks — stocks that aren’t dependent on the overall health of the economy — to own even as the economy begins to slow. He named the usual Big Tech overachievers —Nvidia, Meta, alphabet, Amazon and apple — Same goes for pharmaceutical stocks. Merck and pfizer. Kramer said he likes these drug companies’ cancer treatments.

But Cramer said the Fed’s rate cuts could come sooner than some think. So he also suggested investing in companies that are poised to soar when the Fed starts lowering interest rates. Builder’s First Source. The company’s stock price fell on Tuesday after the company’s CEO said on an earnings call that customers are experiencing “affordability issues” amid persistently high interest rates.

“If you put all your money into stocks that need rate cuts to win, you’re going to get slaughtered,” Cramer said. “But if you keep dabbling in technology and drugs, you’re going to be left in the dust when the Fed finally starts cutting rates.”

Meta, Alphabet, Amazon, Apple, Merck, Pfizer and Builders FirstSource did not immediately respond to requests for comment. Nvidia has not commented on Cramer’s remarks.

Business Jim Cramer’s Investment Guide

Sign up nowBecause CNBC Investment Club tracks Jim Cramer’s every move in the markets.

Disclaimer CNBC Investing Club Charitable Trust owns shares in Nvidia, Meta, Alphabet, Amazon, and Apple.

Do you have a question for Mr. Kramer?
Call Kramer: 1-800-743-CNBC

Want to delve deeper into Cramer’s world? Hit him!
mad money twitterJim Cramer’s TwitterFacebookInstagram

Have questions, comments, or suggestions about the “Mad Money” website? [email protected]

Source of this program
“This is also a smart add-on!!”
“CNBC’s Jim Cramer said Tuesday that Wall Street is currently in a difficult phase of the economic cycle and told investors to invest in diverse companies…”
Source: Read more
Source link: