Jim Cramer: FAANG stocks aren't going away any time soon amid market rotation

CNBC’s Jim Cramer on Monday bemoaned the stock market rotation from the high-flying growth tech stocks and into lagging stocks in the market.

“I’m so sick of hearing that it’s time to rotate into the small caps, or the oils, or the cyclical smokestack stocks,” the “Mad Money” host said.

The comments come after the major market averages slid in Monday’s session, though the trading day capped off a strong month of November for the Dow Jones, S&P 500 and Nasdaq Composite. The averages all put up double-digit gains this month for their best monthly gains since April.

The Russell 2000 surged higher than them all, advancing 18% for its best month on record.

All of the indexes are within reach of their highs.

“Let’s remember what actually took us to these record levels in the first place because those stocks are still the best in show,” Cramer said.

Investors piled into small-cap stocks in stocks in cyclical sectors, which powered the market higher as the public grew more optimistic about the ending the coronavirus and economic crises next year.

Most of the FAANG members — Facebook, Amazon, Apple, Netflix and Google-parent Alphabet — lagged the averages in November, posting low-to-mid single-digit gains during the month. Apple and Alphabet were the exceptions, both growing about 10%.

“These stocks have gone out of style in the Wall Street fashion show, lamentably,” Cramer said. “The smart money keeps telling you to get out of these big tech stocks into small cap, Russell 2000, anything that needs a roaring economy to thrive.”

The big tech stocks have been among the biggest winners in 2020, especially given that they all benefited from the stay-at-home trade. Now that Wall Street is keeping its eye on Covid-19 vaccine news to get a sense of the economic recovery, investors are swapping into stocks that would benefit from the reopening trade.

The aforementioned tech stocks, however, are not cyclical and are in control of their own destinies, according to Cramer.

“There are some stocks that become a lot less attractive when the world goes back to normal, but not FAANG,” Cramer said. “They don’t care who’s in the White House or how soon we get vaccinated.”

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[chrisbentsen]

The FAANG stocks have been good to me.

[stretch]

I’ve made so much profit from FAANG stocks alone. QQQ and XLK are the best indexes around. They’ll be having their day again very soon.

[chrisbentsen]

Apple, Amazon and Google are core holdings that you want to buy and hold for decades.

[sudeepchadha]

Now that Cramer said it, FANG will drop tomorrow. Mr Jinx!

[MathLilly]

I like the Russell 2000, especially the Russell 2000 Growth Index. I like the S&P 400 too. Small and medium-sized businesses lead the economy out of a recession. If you find some that are growth and/or blended, then you can benefit during and after the rotation depending on your allocation

[paulcarman]

I’m only here for Jimmy CHILL #booyaaa!

[jackyw]

Not all fang are great. Sold Facebook at 295 few months ago. And the price havent gone back to that level.

[auctevia]

Lets talk about under the radar Magnite Ticker : MGNI

[tradingwithwill]

The FAANG stocks more importantly still have insane revenue and earnings growth in particular Amazon. FB has Oculus Quest 2 VR headsets which are awesome.

[Wangste]

I own every FAANG along with Tesla; never been happier.

[drewyoung]

Simple honest question!

Does Cramer's famous trust fund portfolio outperform the stock market?

[taindraneupane]

He is happy man as long as free money is there! It’s the most disconnected markets in the history! IMO !

[exaucemayunga]

In the future it'll be called GAAFT. Adding Tesla.


Netflix probably won't last 10 years.

[livingalone]

FANG Stock is goood stock but it wont tripple in price again im buying stock that will 10x my money

[joebasso]

easy money in the market. better then the .com times. free money.

[BalajiMohan]

Hoping to see a video about Magnite (MGNI) in cramers channel. Hidden Gem like TTD

[detectiveorisolve]

Alright, stocks are going to crater now. Thanks, Cramer.

[pvuong]

Didnt you tell us a week ago that we are too late to buy into the dips and just to buy value...

[j.milleraabamsc]

As long as Amazon chooses not to split their stock, they won't be seeing a dime from me. Additionally, forget Facebook, unless you're already in it. Cramer is also wrong about Canadian oil, which happens to be a ridiculously good investment. I do agree that American oil isn't the way to go though

[KLNNNN]

Is it only me, because I am not an English native speaker, or sometimes it is really difficult to understand what he says?