Do not worry about the figures of house building. Buy these actions



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Wall Street needs to see more mergers and acquisitions before the "imminent attack" of initial public offerings is blocking capital investment, Cramer said.

Major US indexes were traded on Tuesday, but yielded most of their gains before closing. The Dow Jones Industrial Average added more than 140 points to Tuesday's session. The highly technical S & P 500 and Nasdaq have both gained about 0.70%.

"I think partly that we have too many actions," said the animator. "So with many new IPOs on the horizon, the market will not be able to handle all the supply.And when the supply exceeds demand, prices fall."

Lyft will be on the Nasdaq on Friday. AirBNB and Uber plan to become public this year, and Slack, Palantir and WeWork could also join the fray.

Cramer predicted that the shares of FAANG would be under pressure if there was not enough money to do everything. The FAANG group includes Facebook, Apple, Amazon, Netflix and Google Alphabet.

"I think the actions of FAANG will be used as a source of funding," he said.

But advanced technology is not the only area that worries the host. He said the oil, cloud, healthcare and transportation sectors, among others, are overcrowded and require consolidation.

"I would not worry so much about the lack of mergers if I was not so worried about the imminent IPO attack," he said. "If fund managers want to participate in these transactions – and they will – they must sell shares they already own to raise funds … and this will put pressure on the entire market. . "

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