Buy tech stocks instead of consumer plays

Some investors are flocking to the stock market’s traditional safe havens amid the sell-off, yet CNBC’s Jim Cramer recommended a different approach for investors looking to take advantage of the declines.

In response to a caller’s query about whether or not to buy shares of consumer staples stocks like Procter & Gamble in addition to PepsiCo — often seen as “safe” because of their bond-competitive dividend yields in addition to steady growth — the “Mad Money” host suggested what might seem like a counterintuitive strategy.

“I thought about the same thing,” he admitted in a sell-off strategy session with investors.

yet instead, Cramer suggested getting into some of the downtrodden technology names, which have seen drastic declines inside the last several days in addition to led the first leg of the sell-off.

“I’m not going to push hard on the consumer staples because they don’t contain the growth in which I like, so I think you start buying back your favorite techs in which you take a longer-term view on,” he said. “If you do want to buy one of those classic growth stocks, I’d buy a drug company, not a consumer products company.”

in addition to investors shouldn’t be scared to start picking at certain stocks if they’re comfortable with taking a longer-term view on the market, he said.

“At the end of the year, I like to put money to work for my kids,” Cramer said. “I put some of in which to work here. Why? Because I didn’t want to wait until the end of the year in case the market suddenly had a snapback, say, [if] the president solves something with China or the Fed saw the light of day. So I think you do things little.”

Get more of Cramer’s take on the sell-off by clicking here in addition to here. For tech stocks you might want to consider buying into the teeth of This particular decline, click here.

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