The tech sector is defenseless against the rash of September selling, Jim Cramer told his Mad Money viewers Thursday, as he broadcast live from the Comcast Center in Philadelphia to kick off the NFL season.
As investors struggle to find a reason for the weakness in tech, Cramer said he's seen this pattern before. As the fiscal year comes to an end for money manager, September has historically been the time when money managers lock in their gains before everyone else does. They don't care that Facebook fell another 2.7%, or that Micron Technology shed 9.8%. They only care about about not losing the gains that took them all year to accumulate.
Unlike other sectors, tech doesn't have automatic defenses, like buybacks and dividends, to protect itself, Cramer told viewers. Buybacks and dividends are how stocks like Clorox and Boeing (BA - Get Report) have largely avoided these selloffs, he added.
But all is not lost in tech. While Facebook and Twitter come under additional scrutiny, other names, like Workday and Adobe Systems have begun to stabilize. Cramer said he's also bullish on healthcare, fintech and even Starbucks.
Source: The Street
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