Investors buy tech stocks to hedge inflation, Fed rate hike, Jim Cramer says
Big Tech stocks become attractive when investor worries about inflation and interest rate hikes rise, CNBC's Jim Cramer said.
"Hyper-growth tech stocks are actually what works best during a slowdown,” the "Mad Money" host said.
"I don't think [Fed Chair Jerome] Powell's going to change his stance, but there are a lot of money managers who disagree," he said.
Money managers began moving into tech stocks as a hedge against inflation and Fed rate hikes, CNBC's Jim Cramer said Tuesday.
Rising raw costs led to a 5.4% increase in inflation last month, the biggest jump in consumer prices in more than a decade.
That triggered concern among some investors that the Federal Reserve could move to raise interest rates sooner than planned to address inflation, Cramer said.
"If you want one industry that's immune to both inflation and a Fed-induced slowdown, well it's big-cap tech," the "Mad Money" host said after the market closed.
“Hyper-growth tech stocks are actually what works best during a slowdown.”
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
Follow the top news of US market!
45KFollowers
6Following
19KVisitors
Follow
Blessedme : As long as there are computers and increasing population, there will slways be a Microsoft. Demand is always there like Apple. Hence no matter what economy inflation, laptops n computers keep upgrading, hence the stock price will always go up.
101820336 : Nice
Soh777 : Especially during this Covid, most of them are at home using their computers, laptops or gamings
xebona :