CNBC’s Jim Cramer on Monday said investors should be in stable, boring stocks to keep their portfolios strong as concerns over inflation roil the market.
“If you took your cue from me and bought common stocks of companies that make real things and do real things that return capital and trade at a reasonable valuation, you’re relatively fine,” the “Mad Money” host said.
“The problem is those stocks that go down less … they’re really boring,” he added.
Cramer’s comments come after a horrible day in the market, which was dragged down by recession fears ahead of this week’s Federal Reserve meeting. The S&P 500 fell to its lowest level since March of last year and closed in bear market territory. The Dow Jones Industrial Average and Nasdaq Composite also fell, worsening this year’s sell-offs.
“Even though it goes against every instinct, when the market craters like this, you should be thinking not what to sell, but what to buy,” Cramer said.
He reminded investors that this is a market in which investors need to focus on not losing money. Unfortunately, the most investable stocks to fulfill this goal are the boring ones, Cramer said.
“I’m willing to make an exception for a couple of growth stocks that get beaten down to ridiculously cheap levels on a price-to-earnings basis … but there aren’t that many of those,” he cautioned, adding that the Dow has many recession stocks while the Nasdaq has very few.
