Jim Cramer: Markets love tech

The markets continue to show their love for technology stocks, said Jim Cramer on the show on Wednesday. He reiterated his long-standing advice, which is that investors should put their first $10,000 of investment money into low-cost S&P 500 index funds. Over time, investors should continue adding to that fund and a bulk of their retirement savings should be in index funds. Once investors get into their 50s and 60s, they can justify having more exposure to bonds.

After all, why couldn't individual investors with a long-term outlook have picked Apple (AAPL) , Amazon (AMZN) or Facebook (FB)? Most of them are likely using their iPhone to browse Facebook and ordering Amazon products anyway. They very well could have the foresight to buy the stock, Cramer said.

Alphabet (GOOGL) - Just about everyone uses Google. That doesn't mean we should be short-sighted and sell the stock just because its YouTube property is having a hiccup. Long-term retail investors will regret selling it, even though the analysts are concerned about its short-term implications.

Those are the obvious tech winners. But there are plenty of other big winners that do well as Salesforce (CRM) and Adobe (ADBE).

These are big winners when it comes to picking stocks and they're available to retail investors. But in order to get the wins, investors have to have a longer-term mindset and ignore the noise, Cramer said.

Shares of Dave & Buster's Entertainment (PLAY) stumbled on Wednesday, falling 3.4% despite beating on top- and bottom-line earnings estimates. Jim Cramer has been recommending the stock since a week after its IPO in 2014 and views Wednesday's selloff as a potential buying opportunity.

This new category of experiential stocks, like Six Flags (SIX) and Carnival (CCL) have been doing really well, Cramer said. Dave & Buster's is in that category as well. It's also given the company a distinct advantage over normal restaurants. In a world of struggling retailers, Dave & Buster's grew same-store sales 3.3%. However, this came in below the 3.7% mark analysts had expected. This has unnecessarily hit the stock.

Paychex (PAYX) is another company that Cramer recommended. The company has seen a boost in its bottom line thanks to the Federal Reserve raising interest rates. For each 25 basis point increase in rates, Paychex sees $3.5 million to $4 million fall to its bottom line. However, the expected jobs growth in middle- and small-market business hasn't given the stock the boost many investors had expected. That's why the company reported what Cramer referred to as a "mixed quarter." Paychex has been a good long-term performer that had a hiccup. It's got a good dividend yield and steady growth, Cramer said.

Source: TheStreet

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