As tech companies battle, Jim Cramer names other sectors to focus on

As volatility in the tech sector continues, CNBC’s Jim Cramer encouraged investors to buy stocks in sectors that have performed well as the Federal Reserve lowered interest rates.

“I’m not advocating the wholesale abandonment of the best industry in history, at all,” he said. “I say, however, that there is fierce competition, with fires burning and clay exploding everywhere, and it shows no sign of abating.”

While emphasizing that he is not opposed to technology, he said the industry is full of “battlefields” where big players fight for dominance. He noted volatility in some of the market’s hottest stocks. Amazon, sales force, Meta And Nvidia. Cramer said he still believes in these stocks for the long term, but suggested it’s a bad idea to “put new money to work in this industry turmoil.”

Saying that the Fed is on the way to lower interest rates, Cramer said that this indicates that “easy money” can be made in areas such as banks, transportation, healthcare and retail. For example, good investments for this economic environment might include a railroad company with little competition, a credit card company, a dollar store or a travel and entertainment-related outfit, he said.

Cramer acknowledged that developments in the tech sector are “fun,” but suggested the benchmark isn’t necessarily relevant when picking stocks.

“Unfortunately, we don’t value entertainment-related stocks per share, so you should focus on boring stocks of boring companies that, in addition to owning a lot of technology, tend to win big when interest rates drop,” he said.

Sign up now For CNBC Investment Club to follow Jim Cramer’s every move in the market.

Disclaimer CNBC Investment Club owns shares of Nvidia, Meta, Amazon and Salesforce.