Every once in a while, Jim Cramer likes to go back to basics of investing to explain the market environment and its impact on the investor portfolio.
On Wednesday, the "Mad Money" host saw a large rotation in dedicated money. This is the money-management core principle stipulating that once a chunk of money has been allocated to a specific sector, it has to stay in that sector no matter what. The cash just gets shifted to different stocks within the sector.
Where is this money rotation taking place? Tech. Cramer even speculates that a company like Salesforce.com will take the whole group higher.
"For most of the last year, money's been pouring into what I call plain vanilla technology," Cramer said.
This group is an umbrella for the semiconductors that fuel industries such as auto, cell phones, computers and the big-ticket items that power businesses today.
Cramer saw that investors became dissatisfied with vanilla tech when both Intel and Microsoft failed to deliver the upside surprises that the Street expected in order for their stocks to keep climbing.
"Now, I have to tell you, don't get too complacent about the longevity of this rotation. We have an analyst meeting from IBM on Thursday, and if it tells a better tale than it did last quarter, we could see a reversion right back to old tech," Cramer added.
However, the "Mad Money" host thinks it is important to point out how quickly the market changes. If you don't do your homework and catch the rotations—your portfolio could see a seismic shift as well.