Investors need not worry that the Federal Reserve induced a market “sea change” by calling off interest rate increases this year and adjust their game plan to make money, CNBC’s Jim Cramer said Thursday.
Amazon: Amazon is nearly invincible to growth, both domestically and globally, Cramer said.
“It’s got management that knows how to deal with the lower prices that may be needed to attract consumers who may not be doing as well as last year … [and] it has Amazon Web Services,” he said.
Apple: Cramer said he doesn’t like that the stock rallied so high Thursday as analysts anticipate its product reveal, but the stock is “perfect for this kind of environment. The company is a lot less economically sensitive than most people think … [and it] gets a huge boost from a weak dollar.”
“Take your pick of the cloud kings. They’re all expensive as all get out here, but they’re also the fastest growers and they aren’t particularly economically sensitive at all,” he said.
The chipmakers “have long cycles and their customers are going to put in orders six months from now, which could make 2020 a good year,” he said.
Pepsico: Cramer predicted that Pepsi will have good growth because of the products it has in the pipeline.
“If you want a safe growth stock with a dividend and some exposure to a weaker dollar, may I suggest you’re describing Pepsico,” he said. “I like the stock. I like the 3 percent yield. It’s marvelous.”
Johnson & Johnson: “I know a ton of people are worried about JNJ, Johnson & Johnson, over this talc situation … I think JNJ’s pipeline, that’s what I’m focused on, is magnificent … Plus, it’s a fabulous weak-dollar play.”
General Mills: “I also like General Mills [only on a pullback], which reported a better-than-expected quarter and sports a 4 percent yield. I think you gotta buy it on pullback…”
Banks: The banks still have a mound of challenges, Carmer said.
“The economy isn’t strong enough to entertain big construction. The net interest margins aren’t going anywhere, now that the Fed is not going to raise rates,” the host said. “Bad loans should start showing up in the third quarter. It’s just a suboptimal situation until their stocks give you higher yields, which means they have to go lower.”
Big cyclicals: “The big cyclicals have historically been wrong in a worldwide slowdown.”
Oil: “The oils are simply lame with few redeeming qualities in a low inflation environment.”
Disclosure: Cramer’s charity trust owns shares of Apple, Amazon, Nvidia, Salesforce.com, and Lam Research.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Questions, comments, suggestions for the “Mad Money” website? email@example.com