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Welcome to the end of October, which is a million reasons to sell, but not many reasons to buy.
Jim Cramer told his Mad Money viewers Monday that while investors continues to worry about the Federal Reserve and China, it's China that is the most concerned. So far, China has not budged in its trade stance, and that could have lasting effects for stocks that operate there.
Which stocks are being hammered in this choppy market and which could not be more?
Perhaps the biggest worry is Rockwell Collins (COL), which could see its merger plans stifled. Cramer said he's also worried about Micron Technologies (MU), which just trades for just four times earnings. Even Kimberly-Clark (KMB) is seeing a big slowdown in its Chinese business and that it could be broken down into PVH (PVH), Starbucks (SBUX) and yes, even Apple (AAPL).
Investors have been selling everything with China, Cramer said, and they're moving their money into FANG, Cramer's acronym for Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL). None of these companies has anything to do with China or the Fed, Cramer concluded, which is why they seem like the only game in town at the moment.
Cramer and the AAP team are adding to their position in WestRock (WRK). Find out what they're saying about their investment club members and get in touch with Action Alerts PLUS.
Executive Decision: Hasbro
For his "Executive Decision" segment, Cramer spoke with Brian Goldner, chairman and CEO of toymaker Hasbro (HAS), which just posted at 30-cents-a-share earnings the bankruptcy of Toys R 'Us.
Goldner said that 2019 will see Hasbro's return to growth as they move past Toys R 'Us. He noted that inventory levels in the US are down 17% and in Europe they're off 20%, as retailers continue to operate at very lean levels .
When asked about China, Golder noted that 70% of their products are currently made in China, but that will be less than 60% in two years. Play-Doh, for example, just resumed production in the U.S.
Hasbro also has some of the most popular video game titles, including Overwatch and Fortnite. Goldner said soon gamers will be able to jump out of the game and play for real with various Hasbro brands.
Cramer said that Hasbro has had a hard time, unlike rival Mattel (MAT), which seems to have real problems.
Over on Real Money, Cramer says we say breakdowns last week in too many groups. Get Real Money With Real Money.
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