CNBC’s Jim Cramer on Thursday called for investors to invest in companies affected by the ongoing global chip shortage and stocks that benefit from the switch to consumer goods.
“I think today was an important lesson. You need a diversified portfolio with both chimneys [stocks] who use semiconductors … and also defensive food stocks with big dividends, “the”Bad money“Host said.
Said Cramer Apple, Caterpillar and Ford engine – whose stocks fell in Thursday’s session – are worth buying when declines related to the low supply of semiconductors. The shortage is caused by the digital transformation that accelerated during the coronavirus pandemic.
Like food supplies PepsiCo, Mondelez and Hershey will also be bought when money managers switch to some defensive names, Cramer said. The rise in defensive investments is fueled by declines in digital and drug stocks due to disappointing earnings results.
“Even with today’s rotation, it is a mistake to sell microchip stocks for the potato chip type or even the Ahoy type chip,” Cramer said, referring to Mondelez. “Give it six to nine months and the … [companies] who need semiconductors will come back. “
Disclosure: Cramer’s charitable foundation owns shares in Apple and Ford.