Money managers are stuck with the market reopening and retail investors should invest accordingly, said CNBC’s Jim Cramer on Wednesday.
“You need to use any opportunity to buy high-quality cycles down to the weak point,” said the host of “Mad Money”.
Cyclical stocks are those whose trading patterns tend to be leveraged for the business cycle and the state of the economy in general.
Cramer highlighted the rail company Union Pacific, whose shares initially fell after news on Sunday that its rival Kansas City Southern was being acquired by Canadian Pacific in a $ 25 billion deal. Since then, stocks have recovered those losses and some more.
Cramer called the transporter “a one-stop shop for the grand reopening”.
“If you knew the score, you could safely buy [Union Pacific] in weakness because this market loves reopening moves, “he said.” I bet you have a lot more space to run. “
Cramer spent weeks analyzing market rotation, explaining that investors are swapping the winners of last year’s blockade, especially in the technology segment, for companies whose businesses do better when the economy is growing.
All major averages fell during Wednesday’s trading session, although shares in the energy, industrial and financial market shares showed strength.