Cramer's 'Mad Money Recap': The New Growth Stocks
06/04/08 - 07:18 PM EDT
TheStreet.com Staff
Click here for an archive of Cramer's "Mad Money" recaps.
Today's rally in old-fashioned tech stocks like Intel (INTC Quote - Cramer on INTC - Stock Picks) is an opportunity to sell, then buy into new-tech stocks like Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), Jim Cramer said on CNBC's "Mad Money" TV show Wednesday. "I never want to be the guy who says that the stock market is dead wrong, but there are days when the market and I have some fierce disagreements. Today is one of them." He said that old-fashioned tech names have been on the move. He called the tech rally a "countertrend rally." "Something had to go up today," Cramer said. "Something had to rise in response to the decline in commodity prices." He said investors can't buy the airlines and can't buy the autos if the economy is slowing. He said that when investors see signs of a slowing economy, it's time to buy stocks that can keep growing despite broader problems. Cramer said that according to the old playbook, old tech is the way to play a downturn. He said he disagrees with this theory. He said that "new-tech" companies, the ones that make energy cheaper or make it more efficient are the ones to buy. "I believe in minerals, I believe in the companies that mine them, and I believe in the companies that move them," he said. Cramer urged viewers to sell old-tech stocks at the recent high prices and use that money to buy new-tech stocks.
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