CNBC’s Jim Cramer on Tuesday gave investors his blessing to consider buying technology-reduced shares after Target reported good news for the Federal Reserve’s fight against inflation last quarter.
“The real green light here is on defeated technology … They might deserve a little resurgence if they have profits and a total revolt if they have repurchases and dividends,” he said.
“This is not a subtle market. I don’t want to think about it too much because sometimes it can be easy,” he added.
Cramer’s comments come after Target said in its last quarter that it will have to take out its excess inventory, which in turn will limit the company’s profits.
The host of “Mad Money”, which the day before advised investors to only buy the fall in oil stocks, said Target news suggests that inflation is peaking. This opens the door for investors to buy stocks that were previously untouchable in a high interest rate environment, he said.
Citing ServiceNow, Broadcom and Salesforce as the most attractive names after Target News, Cramer said it is still moving away from short-term retail stocks.
He also warned investors that this change in the market could disappear as fast as it came, due to the volatility of the economy.
“Of course, this market is so damn fickle that this whole move could be reversed when we get the high consumer price index at the end of the week … This could raise long-term interest rates again. putting all that movement on ice. ”He said.
Disclosure: Cramer’s Charitable Trust owns shares in Salesforce.