- CNBC's Jim Cramer on Wednesday challenged the notion that today's market is following a cohesive business cycle, saying there are instead different trends across sectors.
- "I'm starting to really wonder if the 'business cycle' has become an outmoded term," he said. "Right now, we have multiple business cycles, and they aren't trading together in any sort of harmonious way."
CNBC's Jim Cramer on Wednesday challenged the notion that today's market is following a cohesive business cycle, saying there's a "huge conflicting group of currents" that make the economy difficult to understand.
"I'm starting to really wonder if the 'business cycle' has become an outmoded term," he said. "Right now, we have multiple business cycles, and they aren't trading together in any sort of harmonious way."
Cramer said some groups are stagnating, others are soaring, and others are completely falling apart. This dynamic is likely tough for the Federal Reserve and makes it seem strange that the indexes continue to reach new highs, he said. He added that stock performances now are erratic, especially with the amount of executive action coming from the White House.
One sector that has been consistently performing is travel and leisure, Cramer said, with its success in some ways a holdover from the group's post-Covid boom. Some of these companies are no longer cyclical, he continued, saying they've become secular as it seems consumers want to travel regardless of some macro factors. He recommended a number of stocks in this theme that can be bought on weakness including United Airlines, Marriott, Airbnb, Disney, Expedia, Booking Holdings and American Express.
Cramer gave more examples of uneven trading, noting bullish trends in banking and agriculture, as well as bearish ones in transports and housing. He also pointed to varying patterns in tech, such as strength in semiconductor capital equipment stocks like KLA and Lam Research, alongside a difficult PC cycle and weakness in enterprise software names like Workday and ServiceNow.
"Here's the bottom line: can things stay this tenuous? Sadly, yes," Cramer said.
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