Scott Mlyn | CNBC
CNBC’s Jim Cramer said Tuesday it’s not too late for new investors to take profits in high-flying technology companies that helped power the stock market’s run-up in recent months and are now leading Wall Street’s major reversal.
“I implore the people who are newbies, do you know what you own? Do you know why you own it? Do you own it just for momentum? If that’s it, sell,” Cramer said on “Squawk Box.” “These people who are just in there because they think stocks only go up, they are the ones who are going to get hurt.”
Cramer’s comments come as major tech stocks were again under pressure in early trading. Last week, the tech-heavy Nasdaq Composite fell 3.3% in its worst week since March 20, driven by pullbacks in market-leading stocks such as Amazon, Apple, Microsoft and Facebook. The market was closed Monday due to Labor Day. Nasdaq futures were plunging over 3% Tuesday.
Cramer also advised young investors Thursday to take profits, saying the only way to make money after the market’s robust rally from coronavirus-era lows was to “take something off the table.”