Jim Cramer Says Avoid Consumer Names, REITS When Rates Rise
Jim Cramer, TheStreet’s Action Alerts PLUS portfolio manager and host of CNBC’s ‘Mad Money’ said the vast majority of stocks will go down should the Federal Reserve raise interest rates next month. Several viewers asked Cramer about which stocks get hurt in a rising rate environment, and he responded the most vulnerable sectors are consumer products companies, real estate investment trusts, and utilities. He said bank stocks will go up, and if a company has superior growth its stock should bounce back after an initial selloff. Cramer added while he thinks a rate hike is coming, the economy does not need one. Another viewer asked why Apple (AAPL) stock was falling. Cramer responded that brokerage firm Credit Suisse put out a report about Apple’s supply chain, questioning its order flow. But Cramer cautioned investors against playing the ‘trading game’ with Apple, which is likes a long term holding. Viewers also asked about two retail stocks, Under Armour (UA) and Foot Locker (FL), which have fallen. Cramer said Under Armour has been hurt by warm weather, and Foot Locker has had a big run, so he advises ringing the register on that name ahead of its earnings report. Send your questions to Jim Cramer on Facebook and on Twitter @JimCramer using #CramerQ.
