Action Alerts PLUS portfolio manager Jim Cramer sees a fundamental shift in investment cash flows happening, as investors rotate toward stocks with lower price-to-earnings multiples and away from stocks with higher ones.
As Cramer always says, good stock picking is all about avoiding mistakes, and the mistakes investors tend to make can be boiled down into Jim Cramer's 7 Deadly Sins.
The seventh of those sins is ignoring Millennial money managers. In particular the Millennials are concerned about impact investing, Cramer told AAP call members.
"These days if you do not take into account the desire of your co-shareholders to sell the stocks you own because of environmental and social issues, then you will be blindsided by their exiting," he said.
It's now an instinctive issue for young money managers, Cramer said. "If the company pollutes, if it isn't committed to being a stakeholder of the Earth, then it might be a candidate for selling, even if it is doing well."
So now impact per share is important, just as earnings per share are.
"I think it's time we all heed such imperatives and be careful to include these concerns in our calculus of what stocks to buy," Cramer said. "Heaven knows you don't need your co-shareholders to turn into your enemies overnight."
Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM
Catch Up: Today's Top News Videos Below