CNBC’s Jim Cramer on Monday told investors his “Magnificent Seven” mega-cap tech stocks are the only ones able to compete with the bond market.
CNBC's Jim Cramer on Monday told investors his Magnificent Seven mega-cap tech stocks with cash in reserve are the only ones able to compete with the bond market.on Monday told investors that while most stocks can't withstand the"gravitational pull" of the bond market, several prominent mega-cap tech stocks with cash in reserve are able to hold their own."We're in an unusual situation, but skyrocketing bond yields are bad news for the vast bulk of the market.
"It's funny, we used to look at their gigantic cash positions and their cash management attempts to try to bring in a little extra income as just a kind of waste of time, an abstraction," he said."Now they're huge winners and I think you'll begin to see a line item in their quarters, the money they make off their cash, that could finally offset some of their miserable losses from that darn strong dollar.
For example, Nvidia's valuable graphics chips make it the envy of most companies interested in artificial intelligence, even the other tech mega caps, Cramer said. Microsoft, Alphabet, Meta and Apple have hoarded cash for years and are now reaping those rewards, he added. To Cramer, these stocks no longer have to deal with worries about inflation or long-term value. When the bond market calms down, he said, these companies will be recognized for their solvency.
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