When push comes to shove, most people expect things to go right, Jim Cramer told his Mad Money viewers Tuesday. That's something the bears never seem to learn, despite the Dow Jones Industrial Average soaring from 1,000 to 35,000 over the past 30 years.
Make no mistake, there are plenty of things to worry about in today's market. Between the war in Ukraine, rampant inflation, a Federal Reserve that's woefully behind the curve and supply chain issues as far as the eye can see, stocks should be lower. That is, unless you have hope for a brighter tomorrow.
Last week, investors applauded the Fed's rate hike, and this week, they cheered when Fed chair Jay Powell told us he'd be forceful yet flexible when it comes to knocking out inflation. Why? Because they mean the Fed is finally on the job and inflation will soon be under control.
Sure, in an ideal world, stocks should be valued on their own merits, Cramer admitted. But for the time being, we must bow to the forces of inflation, and view everything through the lens of the Fed and via the situation in Ukraine.
Investors have finally come to terms with the fact that our economy is strong enough to endure both events, Cramer concluded, and that's how we were able to rally into the close.
A Growing Problem
As Russia's war in Ukraine rages on and talk of a global food shortage heats up, crop prices continue to soar. That's why it's time to circle back to the agriculture stocks to see what's worth investing in and what's not.
Cramer said he'd be a buyer of stocks like Archer-Daniels-Midland (ADM), which trades at just 17 times earnings, but would wait for a pullback in Corteva (CTVA), which is already up 20% for the year. In the ag equipment space, Cramer liked Deere & Co. (DE), which trades at 19 times earnings, and also Agco (AGCO), which is cheaper at just 12 times earnings with a variable dividend.
Investors may also want to consider Tractor Supply (TSCO), the ag-focused retailer that services much of rural America. Tractor Supply trades at 24 times earnings, but just gave shareholders a 77% dividend boost.
Finally, Cramer advised steering clear of the fertilizer plays, like CF Industries (CF), Mosaic (MOS) and Nutrient NTR, all of which have already run up big and risk supply disruptions, as the country of Belarus is a major supplier of potash.
Wall Street Doesn't Understand Sports
It may come as a shock, but Wall Street just doesn't understand sports. That's why investors were ready to abandon Nike (NKE) before the company reported solid earnings of 87 cents a share that sent the stock up a quick 2.3%.
Nike shares are ready to run, according to Cramer, because the company gives you so many ways to win. Nike is a mission-driven company with the goal of making you the best athlete you can be. Nike has separation for all of its competitors, something Wall Street has never given it credit for. Nike has innovation and technology that rivals just can't match.
Nike is focused on its customers, not retailers. Nike doesn't need chains like Foot Locker FL to sell shoes, they're developing all-new direct-to-consumer apps that bypass the store altogether.
Lastly, Cramer said Nike remains relevant and cool, something that's hard to do in the fashion-oriented footwear world where fads come and go like the days of the week.
Executive Decision: Bausch Health
In his "Executive Decision" segment, Cramer spoke with Joe Papa, chairman and CEO of Bausch Health (BHC), which plans to split itself into three companies, but has yet to pull the trigger.
Papa said the split is still happening, but they're balancing the need to move quickly with the desire to maximize value for shareholders, something that's more difficult to gauge in volatile markets. They're not looking for perfect market conditions, he said, but they are looking for "ideal" conditions before executing the transaction.
In the meantime, however, Papa noted that Bausch is generating a lot of cash, which it is using to pay down debts while they wait. He was confident that all three of their new entities will create a lot of value for shareholders.
When asked about the increase of myopia in children, Papa said Bausch has been looking hard into the trend, which he feels is caused by increased screen time and less time outside. He said Bausch is, of course, addressing the problem with industry-leading contact lenses, but is also looking into new drugs that may slow the progression of myopia in kids.
As for Bausch's aesthetics business, Papa said things continue to be strong, as our new "Zoom culture" has every wanting to look their best on camera.
Lightning Round
In the Lightning Round, Cramer was bullish on CVS Health (CVS), Cameco (CCJ), Thor Industries (THO), Huntington Bancshares (HBAN) and Micron Technology (MU).
Cramer was bearish on Cano Health (CANO) and Samsara (IOT) .
Off the Charts
In the "Off The Charts" segment, Cramer checked in with colleague Carley Garner over the price of grain, as wheat and corn prices skyrocket and talk of widespread famine intensifies. Russia and Ukraine account for nearly a third of the world's wheat output, output that is now jeopardized amidst war and sanctions. Even if Ukrainian frames could harvest their crops, they have no way to get them to market.
Garner noted that the monthly chart of wheat shows it trading sideways, in a range between $3 and $6, until something goes wrong. After the invasion, wheat prices skyrocketed to highs not seen since 2008, but that may be due to market mechanics and not actual demand.
Garner noted that commodities like wheat now have trading limits, and wheat has been locked "limit up" for six days, which doesn't allow short sellers to exit and has kept the institutional investors from stepping in.
Turning to corn, Garner noted that demand has also been soaring for corn, and the commodity could retest all-time highs of $10.50.
Neither of these are good news, Cramer said, but unfortunately, this is our new reality that we may have to get used to if the war drags on.
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