- CNBC’s Jim Cramer said that deep research on individual stocks will guide investors much better than relying on a macro strategy to pick investments.
- Cramer said that strategists sometimes don’t have the bottom-up view that investors need to succeed.
- The “mosaic” may not make sense, Cramer continued, but the individual components do make sense.
CNBC’s Jim Cramer said Monday that investors should be wary of bearish strategists who choose a macro view and focus instead on individual companies.
“You always hear about the forest losing trees, but when you’re picking stock, it’s also important not to miss trees in the forest,” Cramer said.
In a market where outperformance is plentiful, Cramer says, following one-size-fits-all macro advice can leave investors scratching their heads. That’s why it’s so important for investors to focus on the specifics of each company instead.
Cramer pointed to top performers in a myriad of industries that could have been written off by these bearish strategists.
Cramer said investors might expect industrial stocks and home construction to suffer as interest rates continue to rise. Industry names like General Electric or Cummins did very well, Cramer said, as did housing powerhouses like KB Home and Lennar.
It’s a similar story for health names like Abbott Laboratories and Medtronic, Kramer continued. Consumer names like Campbell Soup and PepsiCo “look great right now,” Kramer said, too, not to mention big tech names like Nvidia and Meta.
“Individually, you can make a case for any of these groups, but collectively, the mosaic doesn’t seem to make sense,” Cramer said. That’s why it’s so important to learn about a company before investing in it, and why investors can’t rely on broader macro strategists to make valuations on individual stocks, he said.
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