- "The stocks that held up today are the ones that belong to companies with products that are in strong demand while supply remains limited," CNBC's Jim Cramer said.
- The Nasdaq Composite suffered a big drop on Monday, tech stocks have become a "source of funds" for more cyclical stocks, the "Mad Money" host said.
- "I say this is a market for grizzled veterans because if a company's only been publicly traded for, say … a dozen years, it's most likely getting crushed right now," he said.
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Many stocks that were up in Monday's session will continue winning, while those that declined will likely keep melting down, CNBC's Jim Cramer said.
"The stocks that held up today are the ones that belong to companies with products that are in strong demand while supply remains limited," the "Mad Money" host said. "It's become a supply and demand market, not a market-share market or a land-and-expand market or a total addressable market or a go-to market."
The Dow Jones Industrial Average and S&P 500 indexes fell from record highs, but the tech-heavy Nasdaq Composite dropped 2.55%, continuing the downward trajectory of the past three months. Many of the stocks in the Nasdaq have become untouchable, even if their underlying companies are doing well, Cramer said.
"I say this is a market for grizzled veterans because if a company's only been publicly traded for, say … a dozen years, it's most likely getting crushed right now," he said. "These modern stocks have become what we call in the business 'sources of funds,' and that's what drove today's sell-off."
The economy is booming, leading money managers to shift their attention from high-growth names to old school companies whose products are in short supply. Those stocks will continue to climb, even if the rest of the market continues to slide on concerns about inflation and higher interest rates, Cramer said.
In a growing economy, many investors are being driven out of flashy names into "boring" ones, he said.
Below is a list of sectors and stocks that Cramer is bullish on:
Mining and materials: Alcoa and Freeport-McMoRan
Oils: Pioneer Natural Resources and Chevron
Infrastructure: Caterpillar, Deere and United Rentals
Homebuilders: Lennar, Toll Brothers and D.R. Horton
Home improvement/furnishings: Williams-Sonoma, Wayfair, Lowe's, Home Depot, Stanley Black & Decker and Best Buy
Consumer products: PepsiCo, Coca-Cola and Procter & Gamble
Transports: J.B. Hunt, Norfolk Southern and Cummins
Banks: Any bank
Retail: L Brands, American Eagle Outfitters and Gap
Agriculture: Mosaic, Deere and Agco
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