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Cramer Says the Money's in Tech This Year, Tread Carefully When It Comes to Any Other Sector

Scott Mlyn | CNBC
  • CNBC's Jim Cramer told investors on Tuesday to keep their money in tech as most other industries see huge losses.
  • This years winners are few, but the losers are many, including: energy, utilities, healthcare, real estate, consumer staples, materials, industrials and even banks, especially regional ones.

CNBC's Jim Cramer told investors on Tuesday to watch out for the losers, because there's a lot of them this year. The safest spot for your money right now is tech -- otherwise, tread carefully.

"You stray, you lose," Cramer said. "That's the defining feature of this market, because if you stray from a small portion of the tech complex, you're gonna be destroyed."

The industries seeing losses on the market right now include energy, utilities, healthcare, real estate, consumer staples, materials, industrials and even banks, especially regional ones.

"It's a who's who of artificial intelligence and friends, a cornucopia of companies that benefit from extremely fast semiconductors, with just a small smattering of winners amid a host of losers," Cramer said.

The healthcare is being slammed by government, according to Cramer, and companies like Moderna and CVS are down in the wake of Covid. Real estate is being badly burned as remote work persists, with office building owners like Boston Properties and Alexandria Real Estate seeing huge losses. Industrial companies like government consultant Leidos is down due to growing fears that the debt ceiling deal will mean slashes to the defense budget.

To Cramer, tech is only immune to this widespread turmoil because of the boon that is generative AI.

"All of this is to say that 2023's the turbo charged opposite of last year," he said. "The market's so narrow that if it weren't for Chat GPT and the recognition of what artificial intelligence could be worth, the averages might be having a terrible year.

But even Cramer wondered if this disparity can truly continue, telling investors he cut some tech stock Tuesday morning for the CNBC Investing Club Charitable Trust.

"We just feel too darned greedy not to take any profits in tech," he said. "That said, though, straying from tech might continue to be the kiss of death in this market, at least until we get a cooling in the trillion dollar colossus that is Nvidia, the undisputed leader of 2023."

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.

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