Jim Cramer reminds investors to maintain a diversified portfolio

On Wednesday, CNBC’s Jim Cramer told investors that diversification remains key to maintaining a successful portfolio.

“I can’t say a diverse portfolio is bulletproof. But I can say it’s easier to stay in the game when a particularly popular group is put through its paces,” a- he declared.

The Nasdaq Composite and S&P 500 closed lower on Wednesday as investors digested the latest flurry of corporate earnings. The Dow Jones Industrial Average edged higher to end the trading session.

Tech stocks fell on concerns over Microsoft’s softer-than-expected forecast, continuing the Nasdaq’s losses for a second day.

The recent declines come after a strong start to the year for the tech-heavy index, as hopes that the Federal Reserve could ease the pace of interest rate hikes drew investors back to growth stocks.

“Honestly, if you have too much exposure to technology, when you have a day like today, you could just say that’s it, I’ve had enough, I’m getting out of this racket. Well, that’s it. That’s why you have to stay diversified,” Cramer said.

He added that he still does not recommend investors increase their tech positions, even after the recent declines. “I want to stay in the game. I don’t want to be blown away when the tech reaper hits.”

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