- Despite the success of CNBC's Jim Cramer's "Magnificent Seven," he said on Monday that it might be wise to trim tech stock while it's still profitable.
- Even though he believes it's still a bull market, Cramer said he sees a weaker month ahead, so investors should cash in a little bit on winners like Apple, Meta, Tesla, Nvidia, Alphabet, Amazon and Nvidia.
CNBC's Jim Cramer told investors on Monday to trim their tech stock and enjoy some of the fruits of their labor while they still can.
"Unless you're terminally greedy or totally brain-dead, you take some profits while you have them," Cramer said. "This is not the time to double down, it's the time to ring the register on some of your gains."
But make no mistake: Cramer believes his "Magnificent Seven," or the seven tech stocks that have dominated the market this year, Apple, Meta, Tesla, Nvidia, Alphabet, Amazon and Nvidia, will continue to be successful. All seven have managed to soar this year due to the merits of their own products instead of macro elements like decisions made by the government or the Federal Reserve, he said.
For example, he predicts even greater success for Apple as it grows its geographic reach, potentially expanding its core user base from 2 billion to 3 billion with new sales in Brazil, the Philippines, Indonesia and India. And according to Cramer, the success Nvidia has found with generative artificial intelligence is far from over.
But even though it's been a strong month and we are still in a bull market, Cramer said he sees the market heading for weakness in June after the Federal Reserve's meeting next week. And he thinks it's best to get in on the profits now.
"Then the bears — many of them uber-rich hedge fund managers who missed this move entirely, as well as endlessly bearish analysts with a lot of followers — will come on air and bloviate about how you won't make any money in stocks," Cramer said. "Rather than wait for the cyclical weakness coming up, I'd lighten up ahead of time."
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple, Amazon, Meta, Tesla, Nvidia and Alphabet.