Jim Cramer Reviews Market Action, Predicts Continued Avoidance of Lagging Sectors
CNBC’s Jim Cramer reviewed Monday’s market action and attributed the performance of stocks to the trends shaping the market. According to him, “This is a market that rewards growth regardless of price. People will pay up for tech growth, which is all about real demand and pricing power, and they’re avoiding companies that have lost pricing power and offer yields that are too low to compete with Treasurys. I don’t expect that dynamic to change any time soon.”
Cramer identified bruised sectors, including consumer goods, as underperformers due to declining pricing power, lack of pricing power, and competition from large companies like Amazon and Costco. Additionally, consumer goods companies face exposure to inflation, which remains a persistent concern for the Fed. Cramer argued that the interest rates and dollar’s strength can contribute to their underperformance, adding that it could be “better for the Fed to be careful for what it wishes for.”
