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2:2912/3/24
Investing

When the Mag 7 lags, you have to buy because they always catch up, says Jim Cramer

12/3/24
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English

The stock market often experiences a surge in December due to a pattern of increased investor activity and money flowing into large-cap stocks. Jim Cramer believes that the 'Magnificent Seven' tech stocks, which have lagged recently, are poised to rebound and recommends buying them during periods of weakness. Furthermore, based on historical patterns, he suggests that stocks which performed well in November tend to continue their strong performance into December.

Tech Stocks Rebound

00:01:06 Jim Cramer highlights the 'Magnificent Seven' or the large tech stocks, which have recently lagged behind the market. He suggests that these stocks will likely rebound, following historical patterns of a 'catch up' period. Cramer believes that the underperformance of these stocks presents an opportunity to buy them, as he expects them to catch up to the broader market.

December Market Surge

00:01:30 The market often sees a significant influx of money in December due to factors like year-end contributions and portfolio adjustments. This flow of money typically favors large-cap stocks, which see a surge in trading activity and investment. Historically, December tends to see gains from November's winners, suggesting that stocks that have performed well in November are likely to continue their positive momentum into December.