CNBC’s Jim Cramer on Thursday advocated for investors to expose themselves to companies affected by the global chip shortage and to stocks benefiting from the rotation in consumer packaged products.
“I think today was a powerful lesson, you need a diverse portfolio with the two stacks [stocks] that use semiconductors… and also defensive food stocks with big dividends, ”said the host of“ Mad Money ”.
Cramer said Apple, Caterpillar and Ford Motor – whose shares fell in Thursday’s session – are worth buying if they drop due to weak semiconductor supply. The shortage is caused by the digital transformation that accelerated during the coronavirus pandemic.
Food stocks such as PepsiCo, Mondelez and Hershey are also being bought as fund managers adopt defensive names, Cramer said. The rise in defensive investments is fueled by the decline in digital and pharmaceutical stocks on the back of disappointing results, he noted.
“Even with today’s rotation, it’s a mistake to sell stock of microchips for the potato chip type, or even the Ahoy type of chips,” Cramer said, referring to Mondelez. “Give it six to nine months and the … [companies] who need semiconductors will come back with a vengeance. “
Disclosure: Cramer’s charitable trust owns shares of Apple and Ford.