Jim Cramer has some thoughts about what kind of stocks to watch after this week's selloff.
"Right now the market is furiously trying to price in a Blue Wave, a total landslide, and the area that's perceived as most vulnerable, the health care sector, is getting socked with sellers who, at this point, don't even care what price they get. As usual, the common stock institutions are bailing while the hedge funds are using various ETFs to knock stocks down. Why not? The creators of these pieces of paper, who sell them as a way for individuals to avoid what they call single-stock risk, know that they are perfect for short-sellers to annihilate a group. It's another reason why I detest the come-ons about ETF products. Why not just market them for what they are really worth: a quick way to get short a group," Cramer wrote in his daily column.
"You have to buy panic not sell into it. I think by Thursday midday the selling will abate. Then you can pick among your favorites. Merck (MRK) reported an excellent quarter. I liked Lilly (LLY) with a stock that was clobbered because of a drug it made that didn't have the needed efficacy against Covid in the hospital. UnitedHealth reported an incredible quarter and it's now down big. Anything below $290 could be a gift," he wrote.
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