This market’s strength lies in the non-tech growth stocks, Jim Cramer says
CNBC’s Jim Cramer said Tuesday that while big tech names are seeing weakness, he thinks the recent movement of money from artificial intelligence companies into cross-sector stocks is supporting the market.
“Institutional money and institutional memory fled bubble stocks months ago and moved into all kinds of non-tech growth plays,” he said. “That’s the power of this market. So Mag Seven fading means a lot less than what the bears are telling you.“
He noted that this shift runs counter to Wall Street’s fears of a bubble in data center stocks. Cramer added that the data center excitement ended months ago as investors turned to sectors such as aviation, retail and fintech. Bands “were the salvation of this market” It continued as highly speculative stocks began to fall.
Cramer likened the current market to the dotcom crash. There’s more money around now, and there’s more money indexed. S&P 500 He said the average has not deteriorated compared to 25 years ago.
He added that this transitional dynamic makes him “more optimistic than most” about the current situation, adding that “there’s a lot of strength in stocks that tried to save us in 2000 but failed because there wasn’t enough capital around.”
“The year is not 2000. I call it 2025; an orderly transition back to the past, sustainable growth with AI as its beneficiary, not its creator,” Cramer said. he said.
