Renowned financial commentator and CNBC host, Jim Cramer, is advising investors to secure their profits from stocks that have experienced a surge in the ongoing bull market.
What Happened: Cramer, on Tuesday, motivated investors to revisit their portfolios and realize gains on stocks that have recently surged, CNBC reported. He stressed the importance of cashing in profits, even in a thriving market.
"If you’ve got a huge gain, I’m begging you to take off something, just take it off the table a little bit,” he said.
“Bulls make money, bears make money, but hogs, they get slaughtered,” he advised.
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Cramer’s strategy involves partial selling of shares in companies that have witnessed a stock pop, but retaining some if the investor is optimistic about the company’s future. He used his charitable trust’s handling of Broadcom AVGO shares as an example, selling some after the chipmaker and software company witnessed a more than 20% run in the past week and a half. He also pointed out Affirm AFRM, which escalated more than 15% on Tuesday and is up over 400% for the year, as an ideal candidate for this approach.
“It’s almost impossible to call the top in an individual stock, so what you need to do is sell your winners gradually on the way up,” Cramer suggested.
Why It Matters: Cramer's advice comes in the wake of his recent comments regarding certain stocks. On Dec. 14, Cramer recommended investors wait for a pullback in Cloudflare, Inc. NET stock, as it had surged around 87% year-to-date. Furthermore, he criticized Federal Trade Commission (FTC) Chair Lina Khan’s policies for hampering investor returns.
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