As per the trusted sources of information, the Money managers began to invest in the tech stocks as there is a hedge against Inflation and a rise in the Fed rates, as stated by Jim Cramer on Thursday.Moreover, the rise in the raw cost has led to the rise of 5.4% in Inflation in the previous month, which is the biggest jump in the prices of customers in over a decade.
The increased concern among some of the investors that the Federal Reserve is likely to move the interest rates much sooner than the planned address the as stated by Cramer. He further added that if you want one single industry that is resistant to both the Fed-induced slowdown as well as the Inflation is the big-cap tech, he added in “Mad Money” after the market had closed.
The investors are also looking forward to the beginning of the earnings season. As per the trusted sources, several companies cannot put down their high cost in the market as the customer would protest against it. Similarly, it is not possible for everyone to handle the sudden increase in the interest rates, as stated by the money managers.