Jim Cramer says it’s worth buying cyclical stocks after Monday’s bath

CNBC’s Jim Cramer said Monday that after a brief decline in cyclical stocks, investors now have the opportunity to cut their technology stakes and buy industrial stocks.

Host “Mad Money”, which advocated the construction of a balanced portfolio, pointed to actions such as steelmaker Nucor, Boeing, Union Pacific, General Motors, Ford and Southwest Airlines after each of its shares fell by about 2 % or more.

He also put United Airlines on the radar. Shares fell 4% during the trading session.

“You have to stay diversified. If you only have technology, you’ll miss the great reopening values ​​that were thrown away today,” he said.

Financial and industrial stocks traded lower on Monday as technology stocks rose.

The Dow Jones industrial average, which is surpassing this month, added 103 points to close at 32,731.20, up 0.32%. The S&P 500 benchmark rose 0.70% to 3,940.59. The Nasdaq Composite, which has had a strong technological performance, has lowered its performance this year, rising 1.2% to close at 13,377.54.

Cramer said investors in recent weeks have shifted money from high-growth stakes and switched to economic reopening operations.

“I don’t want to completely rule out the possibility that the rotation has followed its course. Advancing into technology has been very powerful,” he said. But ultimately, Cramer supported Monday’s technological push until a “counter-trend rally.”

“In this new environment, banks and industrialists cannot do anything wrong, while technicians cannot do anything right, even if they achieve the counter-trend of occasional recovery as they had done today,” he said. “Take advantage of this temporary weakness of the industrialists, reduce the strength to a certain technology if you need the money to buy them. I don’t think you’ll regret it.”

Cramer highlighted the following names:

Disclosure: Cramer’s charitable trust has shares in Boeing and Ford.

Exemption from liability