But on Monday's CNBC segment of "Cramer's Stop Trading," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said he likes hotel stocks because he sees a "resurgence in travel," which means more hotel rooms are needed.
"Marriott's been an amazing stock," he added, with shares up 57% in 2014.
"I would be leery about these valuation calls," Cramer said. Investors should use weakness in the group to buy on a pullback rather than exit their positions. Selling now could keep investors out of some very good stocks.
That logic goes beyond Starwood, Marriott and other hotel names. Cramer said analysts have been cautious on insurance stocks and Procter & Gamble (PG) , both of which should not be sold.
On biotech, Cramer noted some are saying the deal by Actavis (ACT) to acquire Allergan (AGN) for $219 per share is too expensive. Cramer disagrees, saying, "$219 [per share] is not an expensive price for one of the greatest companies ever made. What they've got in the pipeline is so revolutionary."
-- Written by Bret Kenwell