CNBC’s Jim Cramer said Monday that after a brief decline in cyclical stocks, investors now have the option to reduce their tech holdings and buy industrial games.
The Mad Money host, committed to building a balanced portfolio, pointed to stocks like steelmaker Nucor, Boeing, Union Pacific, General Motors, Ford and Southwest Airlines after each of their stocks rose about 2% or more had fallen.
He also put United Airlines on his radar. The stock fell 4% during the trading session.
“You have to stay diversified. If you just own technology, you’re going to be missing out on the great reopening stocks that were thrown away today,” he said.
Financials and industrials traded lower on Monday as technology stocks moved higher.
The blue-chip Dow Jones industry average, which outperformed this month, rose 103 points to close at 32,731.20, an increase of 0.32%. The S&P 500 benchmark gained 0.70% to 3,940.59. The tech-heavy Nasdaq Composite, which has underperformed so far this year, gained 1.2% to close at 13,377.54.
Investors have been turning money from high-growth holdings into economic reopening deals in the past few weeks, Cramer said.
“I don’t want to completely rule out the possibility that the rotation may have taken its course. Today’s entry into technology has been very powerful,” he said. But in the end, Cramer brought the tech boost to a “counter-trend rally” on Monday.
“In this new environment, banks and industrials can’t go wrong while technicians can’t do anything right even if they get the countertrend they occasionally had, as they did today,” he said. “Take advantage of this temporary industry weakness, use technology to get strength when you need the money to buy the industry. … I don’t think you will regret it.”
Cramer highlighted the following names:
Disclosure: Cramer’s charitable foundation owns interests in Boeing and Ford.
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