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Cramer’s advice on stock picking right now: Choose top-tier stocks

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CNBC’s Jim CramerHe said Monday that he is not concerned at all about it. weak market breadthThis was especially true ahead of Federal Reserve’s annual policymaking meeting. The central bank could take a more cautious stance.

We can either make money in a more narrow market than we can with one with greater breadth. The key is to realize that we can make money with a narrow market or one that has more breadth. If we have high earnings and the Federal Reserve doesn’t blanket-bomb the economy (assuming that that remains true Wednesday), then there will still be many studs.” “Mad Money”The host spoke.

Cramer stressed that it was important to have top-tier stocks.

He advised that he wouldn’t steer too far away from the established path. He pointed out that even though there have been better versions, there are still upstart companies in the marketing and database management industries. Salesforce, ShopifyOr Oracle.”

“These better versions have much cheaper stocks — they trade on today’s earnings, not tomorrow’s sales,” he said, contending that’s an especially important criterion for successful stocks in a higher interest rate environment.

Cramer stated that investors would have fewer options if the Fed takes a more hawkish stance. There will still be studs, but the supporting cast will be smaller and many other players won’t be as productive — they might even go negative.”

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclosure: Salesforce shares are owned by Cramer’s charitable trust.

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