Cramer Says These Sectors Might Breed Market Pessimism: 2023 Could Be Year Where 'Tech Is Put In Its Bottled Place'

Prominent market commentator Jim Cramer believes there are segments in the market that he thinks will breed pessimism — most notably retail and technology.

Cramer pointed out that although people are spending, as is evident from the commentary from bankers, they aren’t spending it on fixing up their homes or their wardrobes.

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“They are spending on travel and entertainment. Judging by the minuscule decline in credit balances, the money can only go to that one winning class of spend. There’s not enough left over for anything new in the home, save food,” Cramer said according to a CNBC report.

Talking about technology, Cramer said that the segment could potentially witness a decline because of a lack of belief in the companies that created such amazing wealth. The market expert cited the example of Tesla Inc TSLA.

“The most popular stories of the era that ended in 2021 were the mega caps and they were defrocked in 2022 in hideous fashion. They will have their ups, but they will show a level of cyclicality as formerly betted Caterpillar Inc. CAT or General Motors Company GM,” he noted.

Strong Segments: Cramer said this could be the year where “tech is put in its bottled place in the S&P 500” while permitting other areas that have shown strength since the bottom in October, notably industrials and financials.

“It’s hard to imagine those two groups being leaders in a mild recession, just as hard as it is to imagine tech and fintech being the laggards,” he said.

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Photo: Courtesy of Owen Byrne on flickr