While home gamers may seek shelter in high-yielding stocks during a tough market, there is at least one group Cramer thinks they should stay away from — real estate investment trusts.
Dividends give a cushion against declines because as the share price goes lower, the yield gets higher. However, if a stock is about to get hammered, the “Mad Money” host cautioned against buying it just for the dividend.
That’s why Cramer believes the risk is now too great for real estate investment trusts. While the REIT exchange traded fund, iShares Dow Jones U.S. Real Estate Fund, is up about 8.4 percent year-to-date and is performing better than the S&P, he believes that outperformance could soon come to an end.
To further explain his position, Cramer went “Off the Charts” with the help of Tim Collins, a highly regarded technician on Wall Street. Watch the video to see his full report.
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