Transcript
Empower Financial (0:00)
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Fidelity Investments (0:32)
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Jim Cramer (1:34)
My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people make friends. I'm just trying to make a little money. My job is not just entertain it's but to educate. It's to teach. So call me at 1-800-743- CNBC or tweet. MER if you told me this is where the market was headed two or three months ago, I would have thought you were insane. Even crazier than I am. This radical transition over the past few weeks has just been, frankly unfathomable. We're now buying stocks we hated and we're despising. And guess what? We were now selling short. Sell, sell sell. The stocks that we used to worship. And it's all happening on the fly. The averages don't really affect that Dow gaining fear and 12 points say S&P rising point 79%. Nasdaq climbing point 64%. You can't tell what's underneath though. But that makes it much easier for those thrill seekers who want to surf the Trump stock wave. Sure, today was a bit of reversion day, a counter show because Apple got a reprieve from severe China tariffs this weekend. But we have to think about how to profit from this new market. It means making some pretty sharp changes to your portfolio. And believe me, this is something I think about every day. For the club head of my Wednesday meeting, it's like, wow, I got to get this right. See, something happened this weekend that crystallized things for me. The Wall Street Journal put together this incredible chart of the stocks that are winning so far under the reign of Trump. Oh my. The extraordinary lack of economic sensitivity, the amazing America first nature of the businesses, the pure service nature of so many of these companies. They couldn't be less like what we liked under President Biden. Rip up the old playbook. There's a new stock sheriff in town. So here's what I did. I looked at the winner so far this year from the chart and thought about which ones were good to go and which ones maybe needed to be demoted for a better substitute because perhaps they moved too far. Here's what I found and I can tell you that I didn't see much of the old guard of tech manufacturing. This is about as anti mag 7 list as you could find. So let's start with what I think you can safely buy right now. Based on what I'm seeing, I want to begin with the obvious. The health insurance companies and the drug middlemen. UnitedHealth reports this week it was down today. That's a bit of a rarity in itself and to me that makes for a terrific buying opportunity. I think the largest health insurer can do whatever it wants under this administration. Not making a judgment, just telling you as it is. Next. I've been a fan of health care cover Centene for ages. Cnc ever since late Michael Mydorf used to come on the show to explain to me how his company could offer quality health care to a state's populace. Because at control, of course, you had to treat certain illnesses and injuries in an efficient way. I like Centene. Unless Congress really passes Medicaid cuts like the House Republicans are pushing for because running Medicaid plans is a sizable part of their business. At Centene, they do it really well. How about these middlemen? I think you can buy Any one of them. I like Sancoura and I like McKesson. They take almost no risk and make fortunes in a consistent way. McKesson is one of the largest distributors of both branded and generic drugs. Company isn't a pure play though. It also develops medical record systems and provides surgical supplies too. ST Core is a worthy competitor. Include Cardinal Health, which has all that and also offers specialty pharma and health care services. I bet all three of these companies will see business boom if the Trump administration messes with the pharma supply chain, which is what I'm seeing them do after the close of today's trading. Next Defense is working again. I don't know. It shouldn't be given the pullback from Ukraine. Right? But I sense maybe we're embarking on a real build up as tensions heat up with China. I like to permanently favor Palantir, arguably the number one meme stock of all time with the CEO who whips people into a frenzy. L3Harris works as a combination defense technology, communications play. You want tech. L3Harris is the one. Though I'm loathe to recommend the others because I think the administration wants to focus on cyber warfare and targeted war fighting. Those two are the best. For some reason, road building is a big theme among the winners. That means you want to own Martin Marietta Materials as well as wm, that's the artist formerly known as Waste Management gets a big boost from construction like the other stocks on this list. You have to love how domestic these companies are. I'm thinking the road building plays are working as the money from all of Biden's infrastructure program is finally being put to work. Better late than never. Although I'm sure there are Biden people who question that flip judgment. Vulcan Materials right now is the winner in the category, but I think Martin Marietta's exposure to faster growth. There's DEBM does well when more community roads are built. It's working right here, right now and I think it's going to continue to do so even if interest rates edge higher because of the housing shortage. I want on any of these three we have some tech that works, but it's really a very small group and it's mostly involved with cybersecurity because cybersecurity, well that's like the anti China play, right? Have you seen the stock of CrowdStrike? This thing is a horse. One year after it had a computer glitch, not a hack that shut down millions of computers across the globe, it's coming back incredibly strong. CEO George Kurtz hates to lose. And his worldwide apology tour to aggrieve customers saved a lot of business and may even bring about more business than he had. You can bet that the second half of the year is going to be very strong for this stock. Why do I say that? Because Kurtz told us that when he was here last. I happen to like Palo Alto Networks too, because there's just so much work to do in this space. It's why we own both CrowdStrike and Palo Alto for the job trust. And I never violate my diversification rules. These two stocks are too good. What else? Identity theft. It's rampant antidote Octa. And how about a new one after you've been hit, what do you do? Well, you call in Rubrik. I say you buy Rubrik. After what I saw last week when we spoke to them, I think you must have one of these portfolios. One of these stocks in your portfolio you must have a cybersecurity stock. Now we need some real slow winners to food stocks. That may be the way to go now that RFK Jr. Has made it clear that he's no friend. The GOP dash one weight loss drugs. It's a total green light for candy so Hershey and Mongolies can war. I think you could always buy Colgate in this environment as it's a must own stock in a slowdown. It has been for years. Candy and toothpaste, they go very well together. Oh, and you want an upside surprise. I'm sure Coca Cola right now at this very minute is generating one for the next quarter. It is a classic bankable stock. I don't care that it's near its high. It never is that far from its high. I don't care how boring. And that it goes up slowly over time rather than like a data center stock. That's what I want. Have you seen this stock this year? It's fantastic. Now, there wasn't much retail exposure in the Journal piece. You want retail, you have to take your pick of Wal Mart or Costco. They aren't interchangeable. They are dominant. Wal Mart quarter demonstrated scale, its breadth, its worldwide opportunity. Costco is the hoarding place. And people are hoarding like bad because they know the Costco of the lowest prices. So why not buy whatever you need now before it runs out? Now there's some one else the Journal chart that I'm really liking. Remember Exxon Exo and we had bricks Mithlin. That's. Well, I got to tell you, this used to be a Taser and people still think it's Taser. It's a decent business, but not a big one. What this company really is now is the dominant software as a service system for law enforcement in cities all over America. America. Its body cam stamp system is the gold standard. Its AI work gets rid of the drudgery of filling out reports, gives police officers more time to do their actual jobs. The best. The bad guys plead guilty because it's all on tape. Utility too. There are a bunch of them in the chart. I don't like the question thing. I go for Con Ed because we live in one of the fastest growing areas in the country. 3% yield. 5. 3.7 million people with electricity. 1.1 million with gas. No faster. Mess. Finally, there's gold, which is defying everyone's. How many people said gold's peak? It's not peaking. I believe that gold is back because crypto has quietly lost its luster. I watched a guy today talk about dogecoin. I said, which would I rather have, gold or dogecoin? Yeah, right. You want gold, go with the best. You go with Agnico Eagle. It's the most efficient producer. It's like clockwork in an industry that, frankly, it ceased to be as productive as it used to be. Look, I've got no illusions. After going over these companies, I see several things the winners have in common. They don't have a lot of competition. They're largely domestic. They don't need a strong economy. You can't tariff them out of existence. They have scale and most have fat margins. With the exception of, say, Wal Mart and Costco. You don't need to worry about China. Both those two do have Chinese operations. The bottom line, you've just been given the most boring portfolio in the world. It's exactly what you need with the president who generates too many headlines and a confusing economy is most definitely headed in the wrong direction. At least for now. Take advantage of this list. We will have down days. Keep the list handy. I refer to it many times. It's the right place to be even in a recession, which again is a possibility given how stuck much of the economy really is right now. Let's take calls. Let's go to Jesse in Tennessee. Jesse, Booyah. Jim, got a question for you about Dollar General Company stock. What do you think about them? The dollar stores? They've been beaten down. Yes. Now, here's what I did wrong with Dollar General. I first thought of it as having to do with tariffs and it's not a good situation. What I Didn't think about is how Dollar Tree is doing so poorly and getting offloaded. A lot of Family Dollar and a lot of Family Dollar stocks are right against Dollar General. And the Family Dollars are going to have a lot of going to close which gives a free reign for Dollar General. So where's that lead me? Even though it imports a lot from China, I say it's a buy. Wow. PJ in California. Pj. Hi Jim, this is PJ from Mariposa, California. Oh, fantastic. I'm an investment club member and I'm studying your four part on how to understand the income statement. I'm trying to become a good investor because I need knowledge. So that's what I'm looking for. I like you. I like everything you had to say just then. That was terrific to work. Okay, I bought Oracle. I pulled the trigger too soon. I bought it at 180. It's at 134. I think there's still a deal when we go through with Tick Tock. They're still trying to hammer it out. But what should I do with it? It's before I want you to buy more. I want you to buy more. I think that they're doing a lot of great things. I'm not as concerned about what's going to happen with the data centers. I am much concerned about what's going on with Oracle and they are very much in charge of their own destiny. I think softer Katz is terrific. I would buy the stock anyway. Excuse me. Sometimes boring is better for your portfolio and in this uncertain environment that's exactly what I think you need. On May Monday. Tonight you called in your own battle a company called ABM Industries. I'm bringing the top branch to give a better read on the name. Remember I said I liked it but let's find out more. Given the stock's string of post earnings declines on solid numbers, we gotta get some answers. Then fresh off and turbulent meet for the tape. I'm opening up the phone lines and answering your most pressing questions because are we at a bottom? That's what everybody wants to know. And later, OPEC cut its outlook for oil demand today. And I know a lot of you have oil stocks. How low could the price of crude go? Don't miss my check in with an energy expert. So stay with Kramer.