There is a lot of risk cheating in the stocks market that is based on cloud technology. If not checked, there will be many losers compared to winners, and that wouldn’t be termed as a business. The effects will be devastating as they will turn the markets head down.
The last time stocks were being sold off; there was a strange and alarming pattern that was noted. This pattern had already started building up in the market. A CNBC stocks analyzer, Jim Cramer, pointed out that the wrong stocks were rapidly growing. Cramer gave an immediate warning that the group of winners had already started to get smaller bit by bit with progress in time. The winning stocks were so little that Cramer could count them effortlessly. Almost all of them were all connected with cloud-based technology. The few technology firms that were caught up in the knot were Adobe; the software giant, red hat, customer relation management giant; Salesforce, workday, and square; the payment processor.
According to Cramer, there is a cause for worry as all these giant’s stocks together with other significant players like Lam Research contributed to the group of winners. A narrow market only results in an increased pile of losers. When this happens, all investors flee from the assets class and gamble with other investments. Cramer continued to argue that, when the rough lane is only being driven on by the few roaring winners, many will opt to drop down and try other things just because nothing feels safe for them. Their money is no longer safe, and that means that they will soon own nothing.
The growth experienced in the job market determines how the interest’s rates will be issued. But if the stakes are excessively raised to certain levels, this could pose a lot of risks in the stock market. Cramer said that many groups in the industry have been lost and that the few that are joining the ‘Red hot tech,’ cannot fill the gap that was left. Too much damage has been incurred already. The stocks analyst urged the stock groups to be more vigilant and aggressive. A lot of caution is also necessary as moving blindly could cause more damage. Cramer summarized by saying that the remaining groups should be mindful and recognize that they are operating on a very new landscape that can prove to be treacherous.