Cramer Talks Of Thursday Slide As The Correction The Market Was Waiting On
Following Thursday's pull back in the market, Jim Cramer suggested that investors find companies that have fallen in share price, but still have strong fundamentals.
“We needed a breather. The market can’t go up every day without some sellers coming out of the woodwork,” Cramer said. “This is exactly, though, the kind of pullback I’ve been waiting for, so we have to use this moment to regroup and figure out the market’s next move.”
“Review your portfolio. Understand that if you have a bunch of high-flying momentum stocks — they’re going to trade together and they’re going to go down — you might want to trim those positions, as we’ve been doing for my charitable trust,” Cramer said.
The comments come after the Dow Jones dropped 135 points, or 0.50%, to 26,734.71 for the blue-chip index’s first decline in four sessions and just the fourth down day this month. The S&P 500 slipped 0.34% to 3,215.57 and the Nasdaq Composite reversed 0.73% to 10,473.83.
The broad S&P index turned in its fourth decline in July and the tech-heavy Nasdaq declined for just the third time this month. Friday did not see much movement either positive or negative.
Cramer told investors to keep an eye on Abbott Laboratories, PepsiCo, Morgan Stanley and Johnson & Johnson. He also recommended tech giants of Facebook, Alphabet-subsidiary Google and Salesforce, all of who “have nothing to do with China and they’re doing great.” Cramer also said Amazon is one to watch.
in Contradiction to Cramer's statement, U.S. Attorney General William Barr through shade at Google, Microsoft, Yahoo, Apple, Cisco and Hollywood for their dealings with China, claiming the entities are “all too willing to collaborate with the Chinese Communist Party.
“Don’t panic. Look for the stocks of high-quality companies that are going lower even though they deserve to go higher,” Cramer said . “And if that’s too much work for you, you’ve got my blessing to gradually leg into a low-cost index fund on the way down.”