Many of the FAANG stocks have pulled back 5% or more since peaking in late July, but Jim Cramer says it's OK to buy some here -- just as long as you don't "load up" on them.
"If you just own FAANG names, well, that's not very diversified, is it? You are liable to be down on one or all very fast, and then you'll be thinking, 'What the heck am I doing with all these high flyers?'" Cramer said during an exclusive call with members of his Action Alerts PLUS club for investors.
"I felt that we had such big gains [and] the market was so unforgiving that even though they were relatively cheap, they had too much 'hair' on them," Cramer said. "There were enough things that were wrong that I felt we could [lose] some of those gains."
Some of the problems that he sees for the FAANGs:
He said the company "is on fire right now," primarily because its Instagram unit is so popular with young people. But he added that that's precisely what makes Facebook "too big a target" when problems like the Cambridge Analytica customer-data scandal hit.
"Amazon is big-capitalization stock and a large-dollar-amount stock," Cramer said. "Together, I fear that there might be too much 'S&P 500 pull' to the stock."
Cramer said that Apple (AAPL - Get Report) "couldn't cut a break from President Trump" until recently because the president doesn't like the fact that the tech giant makes so many of its products in China.
And while the White House recently announced plans to exempt Chinese-built cell phones, laptops and many other products that Apple makes from looming tariffs, Cramer said the reprieve could just be temporary.
"In football parlance ... the stock has a bad hamstring that needs to be reevaluated daily before the doctors can give their blessing for it to get back on the field," he said.
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