{"id":42706,"date":"2022-06-09T00:09:05","date_gmt":"2022-06-09T00:09:05","guid":{"rendered":"https:\/\/harchi90.com\/cramer-warns-investors-not-to-bank-on-digitization-stocks\/"},"modified":"2022-06-09T00:09:05","modified_gmt":"2022-06-09T00:09:05","slug":"cramer-warns-investors-not-to-bank-on-digitization-stocks","status":"publish","type":"post","link":"https:\/\/harchi90.com\/cramer-warns-investors-not-to-bank-on-digitization-stocks\/","title":{"rendered":"Cramer warns investors not to bank on digitization stocks"},"content":{"rendered":"
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CNBC’s Jim Cramer on Wednesday advised investors to think twice before investing in digitization stocks while the possibility of a recession looms over the market.<\/p>\n

“You can’t justify owning these unless you believe the [Federal Reserve] will quickly beat inflation without needing to do much more to damage the economy. I think that’s a real possibility, but I wouldn’t want to bank on it by owning too many enterprise service companies, “he said.<\/p>\n

The “Mad Money” host’s comments come after the three major indices recorded slight declines on Wednesday, as investors continue to grow fearful of the possibility of an economic slowdown.<\/p>\n

Cramer said that while digitization is inevitable and the current turmoil facing the economy is not on the same scale as the dotcom crash, a recession could deliver an unforgiving blow to the industry.<\/p>\n

“If the economy goes into a real recession – I mean a big stagflation tailspin – the pool of potential clients will indeed shrink. The digitizers can’t make as much money if their customers are strapped for cash,” he said.<\/p>\n

Cramer added that a frozen IPO market could also lead to “serious shortfalls.”<\/p>\n

“There won’t be enough new clients, many of the existing ones won’t have enough money and there are too many competitors in this space fighting, perhaps, over a shrinking pie,” he said.<\/p>\n

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Disclaimer<\/p>\n

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