Make no mistake, the Federal Reserve wants to take the air out of our economy, Jim Cramer told his Mad Money viewers Tuesday. That's great news for inflation and the long-term health of our economy, but it's also very bad news for the bulls.
There is no fighting the Fed. The Fed always wins. Just look at these former market darlings, all of which have now become uninvestable.
Remember the meme stocks? They were certainly exciting, while they lasted. But now the stocks of GameStop (GME), AMC Entertainment (AMC), Corsair (CRSR) and Wendy's (WEN) have all been cut in half, or worse.
Then there's housing, where a combination of home price inflation and rising interest rates have created the worst affordability we've seen in decades. Home builders and everything that goes into a home is coming down hard.
So too with the banks, which were supposed to prosper from rising rates. But if a recession is looming, those rates can't offset falling loan volumes.
Software and cloud stocks had fabulous growth, but now no one cares. FAANG (Cramer's acronym for Facebook/Meta Platforms (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL) officially died this quarter as Netflix single handedly took out the entire streaming sector with horrible numbers.
Add to that semiconductors, e-commerce (yes, we're looking at you, Amazon), and just about all of last year's IPOs and SPACs, and it's clear that the carnage in this stock market runs deep.
What will tomorrow hold? We'll find out tomorrow when the Fed makes its next decision on interest rates.
Executive Decision: Logitech International
In his first "Executive Decision" segment, Cramer spoke with Bracken Darrell, president and CEO of Logitech International (LOGI), the computer peripheral maker with shares that trade at just 14 times earnings, despite continued growth.
Darrell said the world is changing in lots of ways that are great for Logitech. The hybrid work model means employees now have multiple desks and a greater need for video conferencing cameras and equipment.
Gaming also continues to grow, leading to strong sales in keyboards, mice and headsets. And people are producing more content on platforms like YouTube and TikTok, which means more cameras and editing.
When asked about rising freight costs, Darrell said that increases in ocean freight are only temporary and typically come in cycles that they've seen before.
The secular growth trends are what matters, Darrell concluded, and Logitech's stock price will ultimately reflect those.
Executive Decision: Rockwell Automation
For his second "Executive Decision" segment, Cramer spoke with Blake Moret, chairman and CEO of Rockwell Automation (ROK), which saw its stock plunge 14.5% after the company missed expectations.
Moret said Rockwell could have done better in the quarter, but supplies of semiconductors used in many of his company's products remain in short supply. In a twist of irony, Rockwell's equipment is used to make semiconductors.
Moret said shortages are steadily improving, thanks to supplies increasing production and Rockwell itself, reengineering some of its products to change or streamline the number of chips they use.
Beyond the quarter, business remains strong at Rockwell, as automation remains a high priority for factories and manufacturing around the globe. Rockwell continues to be a leader in many industries, including EVs and batteries, lifesciences and the aforementioned semiconductor equipment market.
Moret said the energy sector has also increased in importance, as Rockwell's systems are used in the production of liquified natural gas.
Executive Decision: Airbnb
For his final "Executive Decision" segment, Cramer checked in Brian Chesky, chairman and CEO of Airbnb (ABNB), which just posted a monster quarter that included a 70% increase in revenues, as travel continues to make a comeback.
Chesky explained that the new world of "work from anywhere" has opened a lot of doors for employees, who are now traveling more, traveling longer and staying at more diverse locations than ever before. Airbnb embraces these changes and now allows its own employees to work from anywhere.
Airbnb has also been an instrumental player in helping to find housing for refugees around the globe, including in Ukraine. Chesky said kindness still exists in the world and thanks to the charity of many, Airbnb is hosting tens of thousands of refugees as they get back on their feet.
Lightning Round
In the Lightning Round, Cramer was bullish on AT&T (T).
Cramer was bearish on ZIM Integrated Shipping (ZIM) , U.S. Silica Holdings (SLCA), Upstart (UPST) and Lucid Group (LCID).
Beware the Billionaires
In his "No Huddle Offense" segment, Cramer reminded viewers to "beware the billionaires" offering investment advice, as their priorities are very different from yours.
"You only need to get rich once," which is why billionaires are focused on protecting their wealth while the rest of us are focused on building wealth.
Now is not the time to sell everything, Cramer concluded.
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