The weakness seen Monday in banks and cyclical stocks will be short-lived, and investors should buy them on the dip, CNBC’s Jim Cramer said.
“When you look at the stocks that got hit today, I don’t think they’re going to stay down,” the “Mad Money” host said, noting the “countertrend rally” into stay-at-home names seen during Monday’s session “will not have legs.”
Darden Restaurants and Norwegian Cruise Lines — names that were hit hard by Covid-related restrictions — dropped 3.5% and 2.3%, respectively. Bank stocks such as JPMorgan Chase and Citigroup each fell more than 1%. Meanwhile, shares of Clorox and Procter & Gamble — two companies that outperformed early in the pandemic — rose 2.6% and 1.6%, respectively.
“The most important lesson today is that this market is fickle, so don’t dump … [these] stocks when they’re going down,” Cramer said.