[ad_1]
CNBC’s Jim Cramer said on Tuesday that concerns about the delta variants of Covid are a dominant theme on Wall Street right now, suggesting that investors may want to position their portfolios to capture market sentiment.
The host of “Mad Money” said there remained a lot of uncertainty about the future trajectory of the virus in the United States and the responses of policymakers. However, he added, “I can tell you exactly what the big institutional fund managers are buying as they try to find ways to play the delta variant.”
The list is sort of a portfolio “that’s going to get worse before it gets better,” Cramer said, stressing that spring 2020 style lockouts were not on the agenda. Nonetheless, he said, previous stock winners should be victorious again in the short term. At the top are retailers Cramer’s WATCH, an acronym for Walmart, Amazon, Target, Costco, and Home Depot.
“Target was the strongest; it has great back-to-school numbers. You can’t go wrong just buying Target’s stock in August, because it’s the perfect place to shop for everything from school supplies to cozies, to sports team uniforms, ”Cramer mentioned.
On the flip side, The Home Depot is able to benefit people who have decided to build or upgrade their home offices as businesses delay return to work plans, Cramer said. “We know Costco made a fortune in the first lockdown – it should work well in a pseudo-lockdown scenario,” he added.
Delivery giants UPS and FedEx are benefiting from an increase in online shopping, which means their shares could rise now that fund managers are once again worried about the impact of Covid on spending habits, a Cramer said.
The “Mad Money” host also singled out Nike, Lululemon and Ralph Lauren, saying corporate casual wear is in demand. Apple can also benefit from extended remote working as people upgrade their electronics, Cramer said.
“Here’s the gist: As the Delta variant continues to spread like wildfire [and] state governments are reinstating some of their Covid restrictions across the country, I bet these pseudo-lockdown stocks will be big winners, ”he said.
[ad_2]
Source link