Today’s rally in old-fashioned tech stocks like Intel (INTC) is an opportunity to sell, then buy into new-tech stocks like Caterpillar (CAT), Jim Cramer said on CNBC’s “Mad Money” TV show Wednesday. Cramer explained that both Intel and Caterpillar have long-term growth rates of 12%, but CAT’s earnings are accelerating while INTC’s are decelerating. He mentioned that Intel is only doing well because its competitor Advanced Micro Devices (AMD) is struggling. On the other hand, Caterpillar is growing strong due to robust sales overseas as the world continues to spend on building out infrastructure. “Today’s pop in tech prices was just a counter-trend rally,” Cramer said. He encouraged viewers to sell the old-tech names and use the profits to buy new-tech names like Caterpillar, Emerson (EMR), Eaton (ETN), Parker Hannifin (PH) and Sociedad Quimica (SQM). Cramer said the old playbook would have investors buying into old-tech stocks as commodity prices fall and the economy slows. However, now Cramer thinks the new way to play it is with new-tech names because those companies are making energy cheaper and more efficient.
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