- CNBC’s Jim Cramer on Wednesday told investors that diversification remains key to keeping a successful portfolio.
- “I can’t say a diversified portfolio is bulletproof. But I can say that it makes it easier to stay in the game when one particularly popular group gets put through the meat-grinder,” he said.
CNBC’s Jim Cramer on Wednesday told investors that diversification remains key to keeping a successful portfolio.
“I can’t say a diversified portfolio is bulletproof. But I can say that it makes it easier to stay in the game when one particularly popular group gets put through the meat-grinder,” he said.
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The Nasdaq Composite and S&P 500 closed lower on Wednesday as investors digested the latest slew of corporate earnings. The Dow Jones Industrial Average rose slightly to end the trading session.
Tech stocks fell on concerns about Microsoft’s softer-than-expected guidance, continuing the Nasdaq’s losses for a second day.
The recent declines come after a solid start to the year for the tech-heavy index, as hopes that the Federal Reserve could ease the pace of interest rate hikes led investors back into growth stocks.
“Frankly, if you have too much tech exposure, when you get a day like today, you might just say that’s it, I’ve had enough, I’m getting out of this racket. Well, that’s why you’ve got to stay diversified,” Cramer said.
He added that he still doesn’t recommend that investors add to their tech positions, even after the recent declines. “I want to stay in the game. I don’t want to be blown out when the tech grim reaper strikes.”
Source: Business - cnbc.com
