"New Tech" vs. Cyclicals

[Techroid]

I watched Cramer last night - 6-4-08. He said stay away from cyclicals - cars, machinery - expensive stuff in the face of a possible recession. This is a "rule" of his. He said that you cannot beat the market.

Then he said that CAT (a heavy equipment outfit) should be bought because it represents new technology.

What gives?

[Goofy Girl]

I believe his recommendation of CAT is due to the company's heavy agricultural involvement. If you look at the industry they are classified in, it's "Farm & Construction Machinery". Cramer loves all things ag.

[wallstreetsedge]

yeah i have to agree, hes probably going into playing the BRIC and CAT would be one way of doing so

[Kevin Wong]

I was thinking about getting a position on CAT since there has been so much global devastation in the past 3 months (earthquakes, floods, fires, etc). I wish there wasn't such a squeeze on the price of diesel, but when it comes to construction and rebuilding, there aren't too many alternatives.

I like Cramer's thesis on "New Tech" although it might take a while for some of these to take off. Still, with the way the market is going, I'd rather invest in something that has more upside versus downside.