Tech stocks climbed Friday to end the week on a high note, but CNBC's Jim Cramer expects more downside in the tech cohort as investors continue to rotate out of high-growth names." host said.
As bond rates rise amid early signs of an economic recovery, investors are fleeing from riskier growth stocks to cyclical ones, particularly bank and industrial stocks that have underperformed, Cramer said. The tech-heavy Nasdaq Composite has fallen in recent weeks and remains down 7% from its high about a month ago. The rotation from tech to value stocks, however, won't last forever, Cramer said.
"Either tech stocks get too low ... or long-term interest rates get too high. Until that happens, the rotation will just continue to play out," he said. "We aren't there yet, but I'm confident that we'll get there eventually because that's what always ends these vicious kinds of rotations." Cramer revealed what's circled on his calendar in the week ahead. Corporate performance projections are based on FactSet estimates:
Won’t last
Good ‘ol jimcramer , always working for the suits