Are You Diversified?
Tech is working right now, but does that mean you want to put all your money behind the Four Horsemen? No. Remember, it wasn’t so long ago that private equity had everybody wild about the brokers – until subprime came around and spoiled the party. Owning entirely tech is just as dangerous now as owning all the brokers was then. You need to spread your holdings out, which is why Cramer plays "Am I Diversified?".
Bob has a “unique high-quality problem.” He’s in some good stocks, but there is a little overlap. Hologic overlaps with Lab Corp., and Nabors overlaps with Exxon Mobil. Cramer would get rid of the Nabors and Lab Corp. and pick up a defense company and a diversified industrial like Caterpillar .
NYX is the worst-acting stock of the best-performing company Cramer has ever seen. It’s horrible, and he will not let anyone else join in the NYX house of pain.
Cramer told Carl to first swap out of Pfizer into Schering-Plough . Otherwise, “that is terrific diversification that is best in show,” he said.