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Death of FAANG Is Greatly Exaggerated, Jim Cramer Says

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When in doubt, hold on to FAANG.

"When our booming economy begins to cool, the tech stocks will come roaring back, Jim Cramer told his Mad Money viewers Wednesday. That's why it's always prudent to keep a diversified portfolio and never give up on FAANG," TheStreet's Scott Rutt wrote in his Mad Money recap. "FAANG is Cramer's acronym for Facebook (FB) - Get Report, Amazon (AMZN) - Get Report, Apple (AAPL) - Get Report, Netflix (NFLX) - Get Report, and Alphabet (GOOGL) - Get Report."

"Yes, it's true, things aren't looking good for the FAANG stocks so far this year. Shares of Amazon are up just 1%, while Apple remains down 3% for the year. Those results can't hold a candle to the industrials like Cleveland-Cliffs (CLF) - Get Report, up 39%, or steelmaker Nucor (NUE) - Get Report, up 75%," Rutt continued. "But Cramer said he's not giving up on FAANG and offered up five reasons why it would be a mistake to sell."

"First, there is no real FAANG, these are just five separate entities, all with winning pedigrees. Second, while FAANG may be lower in 2021, over the long term, it's no contest. Over the past 10 years, Apple has delivered 934% gains and Amazon is up 1,559%," he wrote. "Third, boom times like now are great, but they never last. The economy will eventually cool and the industrials will fall. Meanwhile, FAANG is built to last. All of these companies have the scale and resources to reinvent themselves time and again."

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