CNBC’s Jim Kramer on Tuesday gave investors his blessing to consider buying devalued technology stocks after Target’s last quarter showed good news about the Federal Reserve’s fight against inflation.
“The real green light here is on broken technology. “They can deserve a little revival if they have profits and total turmoil if they have redemptions and dividends,” he said.
“This is not a thin market. I don’t want you to think about it, because sometimes it can be easy, “he added.
Cramer’s comments came after Target said in the last quarter that it would have to dump its surplus stocks, which in turn would limit the company’s profits.
The host of “Mad Money”, who advised investors the day before to buy the decline only in oil stocks, said that Target news suggests that inflation is reaching its peak. That opens the door for investors to buy stocks that were previously untouchable in a high-interest environment, he said.
Citing ServiceNow, Broadcom and Salesforce as names that are more attractive after Target’s news, Kramer said he was still far from retail in the short term.
He also warned investors that this market change could disappear as quickly as it came due to the volatility of the economy.
“Of course, this market is so volatile that all this movement can be reversed when we get the big consumer price index at the end of the week. “This could lead to higher long-term interest rates again, putting this whole move on ice,” he said.
Disclosure: Cramer’s Charitable Trust owns shares in Salesforce.
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