Cramer Urges Diversification as SOXX Logs 8th Straight Loss
Updated
Updated · CNBC · Oct 15
Cramer Urges Diversification as SOXX Logs 8th Straight Loss
3 articles · Updated · CNBC · Oct 15
Summary
Eight straight down days for the iShares Semiconductor ETF marked its longest losing streak in more than a decade, prompting Jim Cramer to argue that the AI sell-off is exposing the risks of crowded portfolios.
Kimberly-Clark rose 4.7% Thursday, Waste Management gained 3.9% and Eli Lilly added 3.6%; all three are up at least 6% for the week as money rotated out of AI-linked names.
Cramer pointed to the CNBC Investing Club's Sept. 1 exit from Corning and Sept. 2 purchase of Kimberly-Clark as a diversification move now being vindicated.
Corning has fallen nearly 5% since that sale, while Kimberly-Clark has climbed more than 10% from its Oct. 1 low, leaving the trust with an unrealized loss of less than 1% after averaging down.
Cramer said the shift away from AI may not last, but warned that overconcentration in one sector can inflict losses severe enough to push investors out of stocks entirely.