Crypto · CNBC Technology
Jim Cramer flags against chasing 'parabolic' stocks and tells there's opportunity in overlooked names instead
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CNBC's Jim Cramer said Monday he's wary of investors piling into the market's hottest trades, arguing that chasing "parabolic" moves often leads to painful losses and that better opportunities may lie in overlooked stocks.
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- In fact, the health-care sector is the worst performing sector in the S & P 500 this year
Summary
That's why his Charitable Trust, the portfolio used by the CNBC Investing Club, recently purchased shares of Johnson & Johnson, even as health-care stocks have been "performing horrendously. That balance becomes especially important in a market led by a narrow group of winners. If sentiment shifts — whether due to changes in spending, valuations, or broader macro conditions — those same leaders can quickly lose favor, he argued.