Jim Cramer says cyclical stocks are worth buying after Monday’s drop

CNBC’s Jim Cramer said on Monday that after a brief drop in cyclical stocks, investors now have the option of cutting their tech holdings and buying industrial stocks.

The ‘Mad Money’ host, who has advocated for building a balanced portfolio, referred to stocks like steelmaker Nucor, Boeing, Union Pacific, General Motors, Ford and Southwest Airlines after each of their stocks fell by ‘about 2% or more.

He also put United Airlines on his radar. The stock was down 4% during the trading session.

“You have to stay diverse. If you only have technology, you’re going to miss out on the big reopening stocks that were thrown out today,” he said.

Financials and industrials stocks traded lower on Monday, while tech stocks rose.

The blue-chip Dow Jones Industrial Average, which outperforms this month, added 103 points to close at 32,731.20, up 0.32%. The benchmark S&P 500 rose 0.70% to 3,940.59. The Nasdaq Composite, which has underperformed so far this year, rose 1.2% to close at 13,377.54.

In recent weeks, investors have shifted money from high-growth holdings to economic reopening deals, Cramer said.

“I don’t want to totally dismiss the possibility that the rotation has run its course. Today’s shift to technology has been very powerful,” he said. But ultimately, Cramer attributed Monday’s tech boost to a “counter-trend rally.”

“In this new environment, banks and manufacturers cannot do any harm, while technicians cannot do good, even if they get the occasional counter-trend of reprieve as they did today. “, did he declare. “Take advantage of this temporary weakness of the industrialists, transform certain technologies into strengths if you need the money to buy the industrialists. … I don’t think you will regret it.

Cramer highlighted the following names:

Disclosure: Cramer Charitable Trust owns shares of Boeing and Ford.

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