Welcome to Extreme Investor Network, where we provide you with expert insights and tips on all things money. Today, we’re diving into one of Jim Cramer’s methods for finding winning stocks: The “new high” list.
CNBC’s Jim Cramer often looks at stocks that are hitting new 52-week highs as a starting point for researching potential investments. He believes that this list can reveal valuable opportunities, especially when stocks have pulled back from their highs due to a broader market sell-off.
Cramer stresses the importance of not blindly buying stocks solely because they are on the new high list. While there can be continuity in the market, unforeseen factors like interest rates or political events can impact stock performance. It’s crucial for investors to be patient and discerning when targeting stocks from this list.
According to Cramer, the key is to identify high-quality stocks that are experiencing a temporary pullback. Avoid stocks on the new high list that are declining due to issues with their fundamentals. Only consider buying stocks that have pulled back if you have confidence in their potential for a substantive comeback unrelated to broader market trends.
“Poring over the ‘new high’ list is a fabulous way to identify potential stocks to buy,” Cramer advises. Remember, thorough research and careful consideration are essential when selecting stocks for your portfolio.
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