CNBC’s Jim Cramer said two persistent market enemies are making stock investing increasingly difficult, but that doesn’t mean investors should head for the exit.
We’re talking about oil prices and bond yields, which are key to the market. If the stock goes up, it’s over. Monday was no different.
Stocks fell as U.S. Treasury yields soared earlier in the week. of Dow Jones Industrial Average decreased by 347 points (0.7%). S&P500 and Nasdaq They decreased by 0.8% and 0.9%, respectively. Markets broke off trading lows around midday as oil fell on reports that President Donald Trump was open to easing sanctions on Iran over its nuclear issue. However, oil prices had soared in the early stages of trading, when President Trump was not so aggressive, and the stock had already suffered enough damage to remain in the red at the close.
Trying to decide whether to abandon the stock market based on every twist and turn in oil or bonds is not the answer for long-term investors. Kramer said it’s important to be more selective about companies that can continue to provide services in a more challenging environment. “We need to determine which companies have the demand, pricing power and scale,” he added. “If you have all three, you won’t be as affected by rising interest rates from a war with Iran.”
Kramer first pointed out that meta platform and inteltwo stocks he said are “perfect for this moment.” Both companies are entering new product cycles with strong demand.
In his meta, he highlighted Muse, the company’s new personal artificial intelligence assistant, which he said could eventually reach billions of users. “Meta has smashed it with this. It will have much more market share than OpenAI, which is still niche compared to the house that[CEO Mark]Zuckerberg built.”
Meanwhile, Intel stands to benefit from the growing demand for central processing units to power AI agents. Kramer praised Chief Executive Officer Lip Vu Tan’s more disciplined approach to spending and efforts to revive the chipmaker’s foundry business. “I have full faith that his plan to bring Inter back to greatness will succeed.”
Mr. Kramer also emphasized microsofthe said he was “quietly becoming a force through the co-pilot.” appleHe expects the company to benefit from the launch of its first foldable phone.
Outside of technology, Kramer cited energy as one of the few sectors that will directly benefit from higher oil prices. he made a white arrow chevron Regarding global production bases and balance sheets, enbridge The dividend yield is approximately 6%, enterprise product partner This is due to exposure to natural gas.
While Cramer acknowledged that opportunities are difficult to find in the current environment, he said there are still stocks worth owning. “At times like this, you try to find stocks that perform in the turbulent negative environment we’re in.”
“You don’t abdicate and you don’t say, ‘We’re in an impossible situation.’ You can multiply the winners,” Kramer concluded. “The idea is there.”
Cramer’s Charitable Trust, a portfolio managed by CNBC’s Investment Club, owns stock in AAPL, INTC, META, and MSFT.
