RealMoney Radio: Teetering Tech

Cramer says the market is telling you money can't be made in expensive stocks.
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There was an awful amount of money that was made in the technology sector in the last 20 years, Jim Cramer said on his

"RealMoney" radio show Tuesday.

However, the

Nasdaq

, which is the depository of many tech stocks, cannot seem to raise its head. First of all, the Nasdaq is expensive, Cramer said, meaning the price-to-earnings multiple is appreciably higher. In a situation like this, Cramer said he doesn't question the market, but tries to obey it.

"Right now, the market is saying you are not going to make money in expensive stocks," he said. "If you are impatient, stay away from the Nasdaq."

There are also not a lot of buybacks in the Nasdaq. Buying back stocks would really help tech, but it's not in its DNA of these companies, so it is not happening.

Although Cramer said he likes the biotech space, he advised his listeners to be cautious of it. In the end there is uncertainty in tech, and where there is uncertainty there is going to be selling, he said.

Taking a look at the homebuilders sector, Cramer said the stocks have become cheaper. "We are a growth country," he said. "People like houses and we never seem to have enough of them."

But this doesn't mean that every homebuilder is a winner, he said, adding that there are only two that he recommends at the moment:

KB Home

(KBH) - Get Report

and

WCI Communities

(WCI)

, which was $35 a year ago and is now at $18.

"These two companies are so down that they look up at me," Cramer said. "I'm not going to run away from companies that have been crushed and have good businesses."

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