Stick to “boring” stocks to survive the crater market

CNBC’s Jim Cramer said Monday that investors should invest in stable, dull stocks to keep their portfolios strong as inflation worries rock the market.

“If you’ve taken my cue and bought common stock in companies that make real things and do real things that return capital and trade at a reasonable valuation, you’re doing relatively well,” the Mad Money host said.

“The problem is the stocks that are falling less… they’re really boring,” he added.

Cramer’s comments come after a horrible market day marred by recession fears ahead of this week’s Federal Reserve meeting. The S&P 500 fell to its lowest level since March of last year, closing in bear market territory. The Dow Jones Industrial Average and Nasdaq Composite also fell, compounding this year’s sell-offs.

“Although it goes against every instinct, when the market dips like this, you shouldn’t be thinking about what you’re selling, but what you’re buying,” Cramer said.

He reminded investors that this is a market where investors need to focus on not losing money. Unfortunately, the best investable stocks to achieve that goal are the boring ones, Cramer said.

“I’m willing to make an exception for a few growth stocks being pushed to ridiculously cheap levels on a P/E basis…but there aren’t that many,” he warned, adding that the Dow has a lot of recession stocks, while the Nasdaq has very few. Stick to “boring” stocks to survive the crater market

Drew Weisholtz

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