Business

Jim Cramer reminds investors to maintain a diversified portfolio

CNBC’s Jim Cramer told investors Wednesday that diversification remains the key to maintaining a successful portfolio.

“I can’t say a diversified portfolio is bulletproof. But I can say it makes it easier to stay in the game when a particularly popular group is put through the meat grinder,” he said.

The Nasdaq Composite and the S&P 500 closed lower on Wednesday as investors digested the latest series of corporate earnings. The Dow Jones Industrial Average rose slightly to end the trading session.

Tech stocks fell on concerns about Microsoft’s softer-than-expected guidance, and the Nasdaq continued its losses for a second day.

The latest declines come after a solid start to the year for the tech-heavy index, as hopes that the Federal Reserve could ease the pace of rate hikes led investors back to growth stocks.

“Honestly, if you have too much technology exposure, when you get a day like today, you can just say that’s it, I’ve had enough, I’m getting out of this racket. Well, that’s why you’re need to stay diversified,” Cramer said.

He added that he still does not recommend that investors add to their technology positions, even after the recent declines. “I want to stay in the game. I don’t want to be blown away when the tech grim reaper strikes.”

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