These are confusing times for investing, Jim Cramer told his Mad Money viewers Wednesday. That's why investors need to look for stocks that work over the long term, Cramer said.
This truly is a "best of times, worst of times" moment in the stock market. Today, Delta Air Lines (DAL) told us that bookings this month have been the best they've ever seen, as consumers are desperate to travel. But, we also heard dire warnings from Jamie Dimon, CEO at JPMorgan Chase & Co. (JPM), that the war in Ukraine could derail the global economy.
How should investors make sense of these conflicting viewpoints? The banks and the airlines have always been "sink or swim" industries. So you might get lucky picking one or the other. Or, you could invest in Procter & Gamble (PG), which just raised its dividend for its 66th consecutive year.
If you're desperate to own a travel stock, maybe skip the hit-or-miss airlines and turn instead to Walt Disney (DIS). Disney has a history of recovering from declines and doing right by their shareholders. If you must have a bank, look to Bank of America (BAC), which has a huge deposit base that thrives with higher interest rates. And if you expect Russia's war in Ukraine to continue, Raytheon Technologies (RTX) is an excellent choice over the long term.
Off the Charts
In the "Off The Charts" segment, Cramer checked in with colleague Carolyn Boroden to see what the technicals are saying about where the markets are headed next.
Boroden looked at the hardest hit sector of our economy, technology, by using a daily chart of the Nasdaq 100. She noted that a number of Fibonacci timing cycles are coming due this week and into next, which would indicate a bottom being formed. However, these indicators are only 60% accurate in this situation.
Looking at the other axis of the chart, price, Boroden noted that the Nasdaq also has a number of floors of support just below current levels, which also would be bullish, but not this time.
The technicals for the Nasdaq are downright ugly, Boroden said, and that means another leg lower is the most likely course for technology stocks.
Growth at a Reasonable Price
For the third installment of his week-long series, Cramer dove into the semiconductor and semiconductor equipment sector looking for GARP, or growth at a reasonable price. He emerged with seven stocks he said fit the model.
First up were Western Digital (WDC) and Micron Technology (MU). Western Digital shares are down 31% over the past year, despite 76% earnings growth. The stock trades for just five times earnings. Micron is a "steal" at just 7.5 times earnings.
Next was Advanced Micro Devices (AMD) and Skyworks Solutions (SWKS), two long-time Cramer favs. AMD is the cheapest it's been since 2015, while Skyworks continues to grow thanks to the 5G wireless transition.
Finally, after 15 months of semiconductor shortages, the equipment makers KLA Corp (KLAC), Lam Research (LRCX) and Applied Materials (AMAT), are all spectacular long-term investments that offer growth at very affordable prices.
Covid Update
Cramer checked in with Dr. Eric Topol, the founder and director of the Scripps Translational Science Institute, for an update on Covid and how the latest BA.2 subvariant is likely to affect our economy.
Dr. Topol explained that while the BA.2 variant is only just beginning to take hold in the Northeast, it is proving to be less severe since so many people have either had the BA.1 variant or are fully vaccinated with one or two boosters. "We need to keep our guard up," he said, but the end may soon be in sight.
When asked about wearing masks on planes, Topol said cloth masks do little to protect against the BA.2 and omicron variants, but admitted that wearing an N95 or KN94 mask that is effective is far less comfortable. That said, he felt the mask extension on planes for a few more weeks would ultimately prove helpful. "We must be patient and not get complacent," he concluded.
Lightning Round
In the Lightning Round, Cramer was bullish on Garmin (GRMN), AGCO (AGCO), Deere & Co. (DE), McDonald's (MCD), Chipotle Mexican Grill (CMG), and Physicians Realty Trust (DOC).
Cramer was bearish on Rocket Companies (RKT), Mosaic (MOS) and Jack in the Box (JACK).
Recession Review
In his "No Huddle Offense" segment, Cramer sounded off against the endless chatter about the inverted yield curve forcing our economy into a recession. He said if you believe all of the skeptics, an inverted yield curve has caused 12 of the past six recessions.
In reality, however, an inverted yield curve is not a reliable indicator of recession, and saying it is just an overhyped scare tactic. The Federal Reserve doesn't want to force a recession, they prefer the so-called "soft landing." And with the yield curve now un-inverted, a.k.a. back to normal, a soft landing is likely what we'll see.
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