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.