Jim Cramer picks 4 stocks to watch as the market moves away from technology

Wall Street appears to be shifting from winning technology stocks to areas of the market that have lagged, CNBC’s Jim Cramer said Monday, describing a strategy for investors to play the rotation.

“The gap between the Nasdaq haves and the S&P 500 have-nots had finally become so untenable this morning that money managers, at least some major ones, decided they should take profits in the technology after a fantastic run and move on to something else. Cramer said, trying to explain why the Nasdaq set an intraday record on Monday before changing course and closing 1.26% lower.

The host of “Mad Money” said he expects this move to happen in a few days, suggesting investors fight the urge to buy technology stocks in a bet they’ll roar right back.

“I’d rather look for companies that have done well in the earnings season and have been unfairly trampled in recent weeks for not being part of the Nasdaq stampede. That way you can fall back on the fundamentals — which still matter — and buy more when they eventually go lower,” he said.

Here are the stocks that Cramer believes meet those criteria:

Morgan Stanley

The investment bank “has done everything right during this period, but because of the senseless rotation out of the financial sector, the stock has been crushed” and now trades at just 12 times earnings, Cramer said. “If Morgan Stanley’s stock continues to fall, I’m confident I’ll tell [CNBC Investing Club] members to keep buying it because it’s so damn cheap.”

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Johnson & Johnson

UPS

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