Jim Cramer
- As megacap tech stocks continue to decline, CNBC's Jim Cramer said he remains optimistic about their prospects in the long run.
- "I think if you're willing to own them for the long-haul and take some pain, you'll continue to win," he said. "You just need to get over the hump, a hump that periodically scares people out of this whole asset class."
As megacaps continue to decline, CNBC's Jim Cramer said he remains optimistic about their prospects in the long run.
"I think if you're willing to own them for the long-haul and take some pain, you'll continue to win," he said. "You just need to get over the hump, a hump that periodically scares people out of this whole asset class."
Cramer said he always encourages investors take profits on winners when they can, otherwise it's possible to "get obliterated." And owning losers can feel more difficult than owning winners because it's more obvious why the latter might be on the decline, he added. This kind of rotation makes investors unsure if high-performing stocks are selling off because there is some sort of issue, or because Wall Street wants to take profits, he added.
He reviewed the bear cases of the Magnificent Seven — Apple, Amazon, Meta, Microsoft, Alphabet, Nvidia and Tesla — as well as megacap pharmaceutical company Eli Lilly. Cramer said the arguments against these stocks are "for real," but similar to what has been said about them for years. He also said he thinks the declines are because investors are "frightened" and don't want to give up their gains.
"These are solid companies with real earnings and great balance sheets," he said. "But these moments of panic are usually where you need to be patient and even opportunistic, taking the sell off as a chance to buy some great stocks while they're on the way down."
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple, Amazon, Meta, Microsoft, Alphabet, Nvidia and Eli Lilly.
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