Stay away from “fool’s gold” software stocks

On Wednesday, CNBC’s Jim Cramer advised investors to steer clear of software stocks.

“Data has become fool’s gold. Data is iron pyrite. When you hear the word data and see a loss, I don’t care what type of business growth, I don’t care what kind of kind of software she has, it’s bad,” he said.

Stocks fell on Wednesday after the Federal Reserve reiterated its hawkish stance against inflation.

The central bank also raised interest rates by 75 basis points. The decision follows figures that suggest the labor market remains strong, including warmer-than-expected private payrolls data for October and Tuesday’s JOLTS report.

Cramer said that despite Wall Street’s hopes that the Fed will end its aggressive rate hikes as soon as possible, that is unlikely to happen until wage inflation and employment decline. .

He also reiterated that investors should target recession-proof stocks that can withstand the Fed’s tightening cycle.

“The chances [are] that these companies will simply not be able to survive [Fed Chair] Jay Powell at the blackjack table. They will go bankrupt,” he said.

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

cnbc Business

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button