The major indexes finished Wednesday in the red. Jim Cramer says expect the selling to continue as big funds build capital to buy IPOs
Investors should expect high-growth technology stocks to be sold off as investment funds free up cash to buy into the wave of new initial public offerings, CNBC's Jim Cramer said Wednesday.
Cramer noted that there was weakness particularly in the Nasdaq as big institutions reconsider their stock allocations with the looming Lyft IPO. "And you know what, it might not be done being lifted. I've seen [IPOs] go up another level and even expand the size of a deal. With that revised range tonight, they're planning to raise approximately $2.2 billion and that's before you count the underwriter's percentage of the greenshoe, which could add another $300 million or so to these companies' IPO haul."
After the IPO, Cramer said the largest funds may decide to load up on even more shares at the open. With IPO season underway, Cramer said he has been short-term bearish on the market and is raising money for his charitable trust, ActionAlertPlus.com
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