Wall St. Confidential: Tech Trouble

Jim Cramer's got an antidote to the tech blues: drug, industrial and bank stocks. "If those areas are so easy right now," Cramer asked on TheStreet.com TV's Wall Street Confidential video Friday, "why take on something [tech] that's so hard?"

Case in point: Although IBM (IBM Quote) had one of the best quarters Cramer said he's seen in years, analysts were quick to run from it as soon as the stock was down.

"This is a very bad time to own tech," he reiterated to Aaron Task, the host of Wall Street Confidential. It has nothing to do with these companies' earnings. "What you're really seeing is seasonality in play."

Market players think they can get out of these stocks now and get back in later at lower prices, which is "smart, right and what people should be doing," Cramer said.

He does, however, believe people can own tech stocks that are driven by their product cycles such as Cisco (CSCO Quote) and Hewlett-Packard (HPQ Quote), which he owns for his charitable trust, Action Alerts PLUS.

And while Cramer also believes tech should outperform this year, he feels investors should stay away from those tech stocks that are at the mercy of the market and have nothing new from a product standpoint. It's too hard to own them, he said, advising people to capture the gains in such stocks as Texas Instruments (TXN Quote), Rackable (RACK Quote) and Network Appliance (NTAP Quote).