CNBC Television Jim Cramer’s game plan for the trading week of March 22
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“Like it or not, stocks are joined at the hip with the bond market right now,“ the “Mad Money“ host said. Subscribe to CNBC Pro to access the full episode of Mad Money:
Tech stocks climbed Friday to end the week on a high note, but CNBC’s Jim Cramer expects more downside in the tech cohort as investors continue to rotate out of high-growth names.
“Like it or not, stocks are joined at the hip with the bond market right now,” the “Mad Money” host said.
As bond rates rise amid early signs of an economic recovery, investors are fleeing from riskier growth stocks to cyclical ones, particularly bank and industrial stocks that have underperformed, Cramer said.
The tech-heavy Nasdaq Composite has fallen in recent weeks and remains down 7% from its high about a month ago. The rotation from tech to value stocks, however, won’t last forever, Cramer said.
“Either tech stocks get too low ... or long-term interest rates get too high. Until that happens, the rotation will just continue to play out,” he said. “We aren’t there yet, but I’m confident that we’ll get there eventually because that’s what always ends these vicious kinds of rotations.”
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