Money managers are locked into reopening trading and retail investors should invest accordingly, Jim Cramer of CNBC said Wednesday.
“You need to take every opportunity to buy high-quality cyclicals to weaken,” the “Mad Money” host said.
Cyclical actions are those that trade patterns tend to influence the economic cycle and the state of the economy in general.
Cramer highlighted the Union Pacific railroad company, whose shares initially declined after news broke Sunday that its rival Kansas City Southern was being acquired by Canadian Pacific in a $ 25 billion deal. The shares have recovered these losses and then some.
Cramer called the carrier “a one-stop shop for the grand reopening.”
“If you knew the score, you could buy with confidence [Union Pacific] “To weakness, because this market loves reopening works,” he said. “I bet he has a lot more leeway to run.”
Cramer has spent weeks breaking market rotation, explaining that investors are trading off last year’s blockchain winners, especially in the tech segment, and in companies that have better business when the economy grows.
All major averages declined during the trading day on Wednesday, although stocks in the energy, industrial and financial parts of the market showed strength.