Investors ought to be cautious of bearish strategists who go for a macro view and as a substitute deal with particular person corporations, CNBC’s Jim Cramer stated Monday.
“You always hear about missing the forest for the trees, but when you’re picking stocks, it’s just as important not to miss the trees for the forest,” Cramer stated.
In a market the place idiosyncratic performers are plentiful, following one-size-fits-all macro recommendation can go away buyers confused, Cramer says. That’s why it is essential that buyers deal with the small print of every firm as a substitute.
Cramer pointed to outsize performers in myriad industries that may have been written off by those self same bearish strategists.
Investors may anticipate that industrial and homebuilding stocks can be struggling given the continued fee hikes, Cramer stated. But industrial names like General Electric or Cummins have executed extraordinarily nicely, as have housing stalwarts like KB Home and Lennar, Cramer stated.
It’s an analogous story with well being names like Abbott Laboratories and Medtronic, Cramer continued. Consumer names like Campbell Soup and PepsiCo “all look great right now” as nicely, Cramer stated, to say nothing of big-cap tech names like Nvidia and Meta.
“Individually, you can make a case for any of these groups,” Cramer stated, “but collectively, the mosaic doesn’t seem to make any sense.” That’s why it is so essential to get deeply aware of an organization earlier than investing in it, and why buyers cannot depend on broader macro strategists to make assessments about particular person stocks, he stated.
