Money managers are stuck with trading reopening and private investors should invest accordingly, CNBC’s Jim Cramer said Wednesday.
“You should take every opportunity to buy high-quality cyclical stocks in weakness,” said the host of Mad Money.
Cyclical stocks are stocks whose trading pattern is generally affected by the business cycle and the state of the economy as a whole.
Cramer highlighted railroad company Union Pacific, whose shares initially fell after news broke Sunday that its rival Kansas City Southern was being acquired by Canadian Pacific in a $ 25 billion deal. The stocks have since made up for those 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] in weakness because this market loves the reopening of plays, “he said.” I bet there is a lot more room to run. “
Cramer has spent weeks breaking the market rotation, explaining that investors are trading last year’s lockdown winners, especially in the technology segment, and in companies whose companies are doing better as the economy grows.
The main averages all fell during Wednesday’s trading day, although stocks in the energy, industrial and financial parts of the market showed strong.