CNBC’s Jim Cramer suggested Thursday that post-election markets have become more extreme, with some big wins and some big losses. He listed sectors that have seen big gains recently and explained why they have soared, but cautioned that investors need to remain calm before thinking about buying.
“There are a lot of overloved stocks in this market right now,” he said. “But many of them deserve to be loved, but not on that level.”
Kramer points to sharp rise in enterprise software stocks, He said there seems to be no way these companies could do wrong because they offer high-demand products for large enterprises. he named sales force, ServiceNow, working day, data dog and atlassian. He also suggested that most of these companies would be relatively unharmed by trade disputes with China that could intensify under the current, stock-focused administration of President Donald Trump. Nevertheless, Cramer is wary of a “parabolic move” in stock prices.
He said with a nod that the market also seems to like companies with subscription models. costco, Netflix, spotify and Amazon Along with recurring revenue sources. Another fast-growing sector is banks, Cramer said, adding that the move is highly justified as investors are anticipating a loosening of the regulatory environment when Trump takes office.
Kramer also highlighted two sectors that are “too much hated” but could bounce back, including pharmaceuticals and semiconductors. both Merck and pfizer He said they are producing promising drugs. Pfizer’s stock price could rise on good news, he added. Cramer said concerns about the group have already been hit hard by Trump’s controversial nomination of vaccine skeptic Robert F. Kennedy Jr. to head the Department of Health and Human Services. He suggested that it may be largely factored into the stock price.
When it comes to semiconductors, Kramer concluded that one reason these companies are struggling is because some feel that new PCs equipped with artificial intelligence aren’t taking off.
“For this group that seems to be falling into a bottomless pit, please call us if you’re interested. However, in a few days they will stop sinking and President-elect Trump, who will bring a lot of their stocks into the market. Only if we get a clear opinion on woodsheds,” Kramer said. “We need to look to the bottom of the abyss. Unless, of course, we have already bounced back from it.”
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