Investment guru Jim Cramer warns to steer clear of stocks and exchange-traded funds with exposure to China in the current “treacherous” market.
The “Mad Money” host suggested buying stocks with longer-term growth stories that aren’t tied to U.S.-China trade.
He recommends cloud-related shares, health-care stocks and high-yielding equities.
“We’ve got to call a spade a spade. This market isn’t just volatile, it’s treacherous,” he recently warned on CNBC. “I don’t want the treachery, which is not going to go away, to get to you. Use it to your advantage.”
The best way for investors to take advantage of the swings is to ignore them altogether, said Cramer. He urged investors to focus on long-term themes “that hold up through this madness” because they aren’t tied to China or the welfare of the broader economy.
The key is to stay away from sectors that are even “remotely connected to the Chinese economy” or “hostage to the business cycle,” he said, referring to the industrial sector, the oil patch and the bank stocks.
While investment strategies in the current volatile environment and plentiful, one option may be to just get out of the ocean if the waves are too rough.
Newsmax Finance Insider Hans Parisis explained that with all of the global turmoil, sitting it out may not be such a bad idea after all.
Parisis explained that in addition to China, the Brexit situation is also a danger for the markets and investors.
"Investors could do well keeping in mind that if the British pound should really tumble like for example in case Britain should leave the EU with no agreement that this would have, at least, a temporary negative effect on the euro and put upward pressure on the dollar," he explained.
"For the time being, remaining on the sidelines and being in “cash” equivalents in dollars and Swiss francs are a couple of the safer places to be, he recently explained.
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