Tags: jim cramer | stocks | buy | dividend | tech | market

Jim Cramer: Buy Big Tech, Dividend Stocks in Market Weakness

Friday, 25 September 2020 09:35 AM

Investment guru Jim Cramer urges savvy investors to keep buying certain stocks as the seemingly endless market volatility will continue.

The “Mad Money” host said on CNBC that he likes Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) if the shares continue to fall, while dividend-paying stocks like PepsiCo (PEP), Johnson and Johnson (JNJ) and General Mills (GIS) can be bought now.

“But when it comes to anything else, you have to be patient,” Cramer said.

The market should remain volatile “until more of those overly bullish new investors throw in any towel that they may be holding,” Cramer said.

“When the market’s roaring, a lot of investors seem to forget the most fundamental rule in the book: buy low, sell high. Instead, they want to buy high and sell higher,” Cramer said. “The problem with that strategy is that when stocks go down, they go down hard—you tend to lose money a lot faster than you make it.”

However, not all investors seem to be in a buying mood.

The risk-off sentiment on Wall Street fueled the third-worst weekly outflow on record from U.S. equities, with technology shares falling out of favor.

U.S. stock funds bled $25.8 billion in the week through Sept. 23, according to Bank of America Corp. and EPFR Global data, in a reversal from the previous week’s biggest inflow in more than two years, Bloomberg reported.

Investors exited the hottest sector of the rebound, pulling the most money out of tech funds since June 2019.

While traders were buying the dip just a week ago, sentiment has switched firmly to risk off in recent sessions, with pessimism seeping in about the prospect of further fiscal stimulus to support the world’s biggest economy.

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Investment guru Jim Cramer urges savvy investors to keep buying certain stocks as the seemingly endless market volatility will continue.
jim cramer, stocks, buy, dividend, tech, market
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2020-35-25
Friday, 25 September 2020 09:35 AM
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