CNBC’s Jim Cramer said Tuesday that investors should grow more selective after the market’s recent run, warning that buying stocks near their highs is often “a license to lose money.”
On a volatile session that saw sharp moves across major indexes, Cramer said investors should resist chasing stocks already up 30% or 40% for the year and instead wait patiently for better entry points.
The Dow Jones Industrial Average fell 466 points to close the session, or 0.94%.
Cramer cautioned against late-cycle enthusiasm in oil stocks, arguing that investors who bought producers near recent highs could be vulnerable if Venezuela ramps production and pressures crude prices.
He also flagged near-term risks in banks ahead of earnings season, even while calling the group chronically undervalued.
Cramer said JPMorgan Chase looks cheap at roughly 16 times earnings, but warned that CEO Jamie Dimon tends to emphasize risks when conditions are strong — commentary that can temporarily weigh on the stock.
Cramer also pointed to CrowdStrike falling nearly 100 points from its November highs before rebounding. He added that geopolitical instability, including Venezuela’s political upheaval, historically increases hacking activity, strengthening demand for CrowdStrike’s services.
In the same vain, Cramer praised Nvidia CEO Jensen Huang, who recently described CrowdStrike as a core cybersecurity provider underpinning the $10 trillion AI-driven enterprise transformation. He also reiterated confidence in Microsoft, which has pulled back sharply since reporting earnings due to heavy AI spending, as well as longtime favorites Nvidia and Broadcom.
“By all means, own some unloved tech names, but save room for a quality consumer [stock],” Cramer said.
