CNBC’s Jim Cramer on Monday told investors his “Magnificent Seven” mega-cap tech stocks are the only ones able to compete with the bond market.
CNBC's Jim Cramer on Monday told investors his Magnificent Seven mega-cap tech stocks with cash in reserve are the only ones able to compete with the bond market.on Monday told investors that while most stocks can't withstand the"gravitational pull" of the bond market, several prominent mega-cap tech stocks with cash in reserve are able to hold their own."We're in an unusual situation, but skyrocketing bond yields are bad news for the vast bulk of the market.
"It's funny, we used to look at their gigantic cash positions and their cash management attempts to try to bring in a little extra income as just a kind of waste of time, an abstraction," he said."Now they're huge winners and I think you'll begin to see a line item in their quarters, the money they make off their cash, that could finally offset some of their miserable losses from that darn strong dollar.
For example, Nvidia's valuable graphics chips make it the envy of most companies interested in artificial intelligence, even the other tech mega caps, Cramer said. Microsoft, Alphabet, Meta and Apple have hoarded cash for years and are now reaping those rewards, he added. To Cramer, these stocks no longer have to deal with worries about inflation or long-term value. When the bond market calms down, he said, these companies will be recognized for their solvency.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Magnificent Seven could be called the messy seven after a 'meh' third quarterThe so-called Magnificent Seven lost some luster in the latest quarter, as they proved no longer the big market drivers they were earlier this year.
Read more »
Magnificent Seven tech stocks haven't been this cheap in six years, Goldman Sachs strategists sayThe top megacap stocks haven't been this cheap in six years.
Read more »
A New Interest-Rate Regime Has Begun. These Are the Market’s Winners and Losers.Bond prices, the Magnificent Seven and emerging markets are under pressure.
Read more »
Beware the bears: Why it's too easy to be a seller right nowThe stock-market sentiment, as measured by various polls, rivals the most negative Jim Cramer can recall.
Read more »
Jim's ColumnsThe stock-market sentiment, as measured by various polls, rivals the most negative Jim Cramer can recall.
Read more »
Paul Levitz & Jim Shooter on the Future of the Direct MarketAt New York Comic Con, The ICv2 Insider Talks 2023 will focus on the direct market. With Paul Levitz and Jim Shooter in conversation
Read more »