Jim Cramer says it may be too late for some to get in on the action
CNBC's Jim Cramer spoke to investors on Tuesday about the market's rally outside the tech sphere, as well as the morning's soft consumer price index report. To Cramer, Tuesday was a "jailbreak," with many leaving Treasurys behind to get back in the market, and others seeking to move money from tech to new, fast-growing stock.
Cramer felt many did not appreciate the market's "ugly wins," or close-game wins, over the past few weeks.
"The big-time strategists are finally beginning to warm up to this market," Cramer said. "I'm simply saying that the risk/reward has shifted. The sidelined money wants in because they didn't count the sloppy wins we've had for months."
If you're not already invested in many of the non-tech companies that are starting to rally, Cramer thinks it may be too late, as the relatively easy money has already been made.
"I don't think you make all that much money coming in here," Cramer said. "At this point, you have to wait, because these Johnny-come-latelies are not destined for big gains, they never are."
Cramer pointed to Caterpillar , a construction-equipment manufacturer that was up more than 3% by Tuesday's close. Caterpillar stock was at $206 at the end of May, when many were convinced recession was inevitable and it would not be a good buy, he said. Barely two weeks later, and it has shot up to $245.
"When the standings are posted, those who came in today are truly the people who believe that they didn't miss Caterpillar, they didn't miss Apple, they didn't miss Microsoft, they didn't miss Oracle, they didn't even miss Nvidia, my dog," Cramer said. "And you know what? They did. They are late to the party here, yet somehow they've convinced themselves they're early."
Source: CNBC
