Yes, this market is just awful, Jim Cramer admitted to his Mad Money viewers on Thursday. But in the long run, the best way to make money, Cramer said, is to believe, not disbelieve, own stocks, don’t rent them, and commit when times get tough. , without running and hiding.
Has Cramer become hopelessly optimistic? In the short term, perhaps, but the long-term trend in stocks is always higher.
You can create a fair and rational bear case for just about any stock right now. Apple (AAPL) – Get the Apple Inc. report. could suffer from blockages in China more than expected. Nvidia (NVDA) – Get the NVIDIA Corporation report might suffer from slow gaming. Costco (COST) – Get Costco Wholesale Corporation Report could easily go the way of rivals Target (TGT) – Get the target company report and Walmart (WMT) – Get the report from Walmart Inc..
But once the smoke cleared, Apple was still a long-term winner. Nvidia has survived the bitcoin mining downturn, and it surely can survive a gaming downturn. And Costco has always reinvented itself and outpaced its peers.
That’s why Cramer said investors need to have conviction and not just sell everything and go home. In the long run, enduring the pain and staying invested is the only way to success.
Executive Decision: Constellation Energy
In his first “Executive Decision” segment, Cramer spoke with Joe Dominguez, President and CEO of Constellation Energy (CEG) the electricity generator which represents 10% of our country’s clean energy production.
Dominguez said Constellation generates more clean energy than the next two utilities combined, thanks to its 23 nuclear and hydroelectric facilities.
The energy business has always been about balancing supply and demand, and renewables simply can’t supply electricity 24 hours a day. That’s what makes the next generation of small nuclear reactors modules so exciting. They can meet America’s needs in a clean and safe way. Our government should only support the new technology, Dominguez said, and help offset initial construction costs.
Asked about safety, Dominguez admitted that nuclear accidents have an outsized impact on public perception. Nuclear is still the safest form of energy today, and the next generation of reactors will only improve on that record.
Prospects for defense contractors
Nobody likes to be a war profiteer, but the war in Ukraine fundamentally changed the outlook for American defense contractors. The impact of the war extends deep into Europe and beyond, and countries like Germany realize that they must step up their defense efforts dramatically. And it will take years for the defense industry to replenish the stockpiles that have been pouring into Ukraine for three months.
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Cramer recommended four defense companies. The first two were Lockheed Martin (LMT) – Get the Lockheed Martin Corporation report and Raytheon Technologies (RTX) – Get the Raytheon Technologies Corporation report, which manufacture the Javelin anti-tank system. The United States has already sent 5,500 javelins to Ukraine, but our production is only 2,100 per year. Raytheon also manufactures the Stinger missile system, while Lockheed is the aviation leader with the F-35 fighter jet.
Next, AeroVironment (AVAV) – Get the report from AeroVironment, Inc., makers of the Switchblade drone. The United States has sent 700 to Ukraine so far and the company is ramping up production.
Finally, Cramer told Northrop Grumman (NOC) – Get the report from Northrop Grumman Corporation is also a name that should be on your defense contractor shopping list.
Executive Decision: Palo Alto Networks
For his second “Executive Decision” segment, Cramer also spoke with Nikesh Arora, president and CEO of Palo Alto Networks. (PANW) – Get the report from Palo Alto Networks, Inc.the cybersecurity company with shares down 30% from their highs despite strong earnings and raised guidance.
Arora said Palo Alto grew 40% this quarter, thanks to its investments in cloud, firewalls and artificial intelligence. The company continues to gain market share and has just delivered its best quarter in four years.
Cybersecurity remains of utmost importance to every business, Arora added, and no business can afford the economic chaos that attacks could cause in our country. That’s why Palo Alto extends its “zero trust” model to “zero trust, zero exceptions” because every facet of an organization must be equally secure.
lightning tower
In the Lightning Round, Cramer was bullish on SoFi Technologies (SOFI) – Get the report from SoFi Technologies IncDraftKings (DKNG) – Get DraftKings Inc Class A Report and Cloud Flare (REPORT) – Get Cloudflare Inc’s Class A Report.
Cramer was bearish on PLBY Group (PLBY) – Get the report from PLBY Group, Inc. and Alibaba (BABA) – Get the report from Alibaba Group Holding Ltd..
We can’t wait for the little hikes
In his “No Huddle Offense” segment, Cramer implored the Federal Reserve to get tough on inflation and take decisive action to crush our runaway inflation. Our economy cannot wait for a series of small interest rate hikes.
The Fed could raise rates by 100 basis points tomorrow, Cramer said, and markets would react immediately and the pain would quickly pass. Small moves have yet to make a difference in housing, autos or retail. It’s time to bring out the big guns.
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