CNBC’s Jim Cramer on Wednesday informed buyers that diversification stays key to protecting a profitable portfolio.
“I can’t say a diversified portfolio is bulletproof. But I can say that it makes it easier to stay in the game when one particularly popular group gets put through the meat-grinder,” he mentioned.
The Nasdaq Composite and S&P 500 closed decrease on Wednesday as buyers digested the most recent slew of company earnings. The Dow Jones Industrial Average rose barely to finish the buying and selling session.
Tech shares fell on considerations about Microsoft’s softer-than-expected steerage, persevering with the Nasdaq’s losses for a second day.
The current declines come after a strong begin to the 12 months for the tech-heavy index, as hopes that the Federal Reserve might ease the tempo of rate of interest hikes led buyers again into progress shares.
“Frankly, if you have too much tech exposure, when you get a day like today, you might just say that’s it, I’ve had enough, I’m getting out of this racket. Well, that’s why you’ve got to stay diversified,” Cramer mentioned.
He added that he nonetheless would not suggest that buyers add to their tech positions, even after the current declines. “I want to stay in the game. I don’t want to be blown out when the tech grim reaper strikes.”