CNBC’s Jim Cramer on Tuesday reminded investors that the new year didn’t bring about a new economy.
“The fundamentals are what matters and, sadly, we have not turned the page on this economy — just the calendar,” he said.
Stocks slipped on Tuesday to kick off the year, as rising interest rates and persistent inflation continued to worry investors.
Recession-proof stocks such as health care and consumer-packaged goods are working, he said. Stocks of companies that have significant business in China are also performing well since the country is poised to continue reopening its economy, he added.
Cramer warned that while it’s far too soon to bet that mega-cap tech stocks will make a comeback, he still believes that investors who own shares of Apple shouldn’t sell.
The company could release a “brutal” preannouncement before it reports fiscal first-quarter earnings later this month, he predicted.
“Still, I believe Apple’s issues are related to supply, not demand. It’s gonna be a tough time to own this stock, but Apple’s such a high-quality company … I’m sticking with it with my usual attitude: own it, don’t trade it,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares of Apple.
