Jim Cramer says buy fashion stocks. Tech is wobbling. Consumer names held up. Now retail traders will sprint toward a clothing rack with their brokerage app open.
Consider the logic. The AI trade got crowded. Everyone piled in. So Cramer points at the other side of the mall.
Fashion stocks are tied to people buying shirts. People buy shirts when they feel rich. They feel rich when stocks go up. Stocks go up when people buy shirts. A perfect circle. Nobody has ever fallen out of one.
Retail traders will love this. They have never once been right about a trend. But they own hoodies. That counts as due diligence now.
Here is how it will go. Someone in a basement will buy a call option on a handbag company. He will explain his thesis to his roommate. His roommate will be a cat. The cat will not respond. The cat has seen his portfolio.
Cramer calls it a buy beyond the AI trade. Beyond. Like a frontier. Like Lewis and Clark, but with a credit card and a return policy.
Technicians know what a chart says. Support. Resistance. Volume. None of it says anything about a trench coat. A trench coat is a coat. It does not break out. It hangs in a closet and watches you lose money.
The summary calls consumer stocks resilient. Resilient is what we call a stock that has not fallen yet. Same with a man on a ledge.
Buy the six fashion stocks. Wear the losses. They come in your size.
Photo by Jake Banasik on Unsplash
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