What happened to these tech companies and many other stocks that are lower in the past month? Nothing at all, at least according to CNBC's Jim Cramer.
"The fact is ... there's nothing really going on at Facebook, and nothing at Apple Inc. AAPL, Amazon, Netflix [or] Alphabet," he said during his daily "Mad Money" show Monday. "They remain dominant in their industries, as dominant as they were when they reported their earnings."In fact, investors can write off the poor performance of stocks to the month of August, which is "useless."
The market from time to time can appear to be illogical and confusing but for some odd reason this plays out over and over again during the month of August, Cramer suggested. Trading action during the month is more often than not "random and meaningless," which means investors digging to find a reason to explain the decline aren't doing themselves any favors.
"There is such a thing as random movement periodically and it always gets ascribed to something," Cramer further explained. "We might as well ascribe the action to the eclipse."
Bottom line, in an ideal world, investors will sleep better at night knowing that their stocks move in a rational direction — but this is wishful thinking as sometimes "there's nothing much going on except figments of imagination."
Related Links: Cramer On 'Broken Stocks': Opportunities Galore! Cramer Finds A Way To Explain Stock Diversification With Fantasy Football© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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