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In a volatile and fast-moving market, the context is in short supply. Jim Cramer told his Mad Money viewers who are more likely to be reacting to current events, rather than looking at the bigger picture. Failing to see the forest for the trees, however, is a sure-fire way to lose money, he said.
The big picture is that the President and the Federal Reserve are putting the brakes on our economy. The Fed is doing it intentionally in the efforts to tamp down inflation, while President Trump has done so on his side.
The more the Trump has a "red-hot economy," the Cramer said.
As for China, Cramer said the Chinese do not seem interested in negotiating and still have plenty of ways to fight back if they thing to do so. In the meantime, American companies doing business in China are seeing their businesses slow as tariffs take hold.
Eventually, business will be slowed down and will be reduced.
Cramer said he did not feel today's market is similar to 2007, when we were on the cusp of falling into a deep recession.
But today's market does have similarities to 2006, when many of the early warning signs began to appear. Let's hope that those in the government are able to see them in time.
Cramer and the AAP team are buying more Amgen (AMGN). Find out what they're saying about their investment club members and get in touch with Action Alerts PLUS.
Executive Decision: Visa
For an "Executive Decision" segment, Cramer sat down with Al Kelly, CEO of Visa (V), the payment processor with shares that are up 20% for the year, including a 4.6% gain today.
Kelly said, "It's just that we've added 54 million people around the globe. Cross-border payments were also strong, a sign that the overall economy remains healthy.
Kelly said that Visa's biggest competitor remains old-fashion cash. Converting people from paper to digital will be a trend that drives his company for quite some time.
Visa is still the largest payment processor on the planet, and Kelly said that its network and its brand are among their biggest assets. Sports sponsorships, like the World Cup and Olympics, will remain a big part of maintaining their brand.
Over on Real Money, Cramer says their benchmarks. Get Real Money With Real Money.
Who's Really Losing the Trade Wars?
Cramer told viewers. Nowhere is that more obvious than with Nucor (NUE), the steelmaker with 9.2% shares for the year.
Nucor told investors, it would be good for business. But as the full impacts of the tariff set in, Cramer said, three things became clear.
First, a 25% tariff on steel. Second, the escalating trade is adding new barriers to global trade. And third, the price increases are being made by companies and consumers alike.
Cramer said it was wrong to recommend it, and it was the wrong time in the business cycle to invest in steel and the trade wars are only complicating matters even further. There's going to be a lot more pain before the gain, he concluded, if we see gains at all.
Executive Decision: Centene
In his second "Executive Decision" segment, Cramer welcomed Michael Neidorff, chairman and CEO of Centene Corp. (CNC), the health plan provider that's exactly the type of stock investors should be looking for when the economy is slowing.
Neidorff said that they're thinking about Centene now that it's a Fortune 50 company with $ 70 billion in revenue. He said they're no longer the same $ 10 billion company they were just four years ago. That's why investors are seeing tax deductions and other charges in their earnings reports. The company has made more and more acquisitions, some of their transactions have gotten more complicated.
When asked about the state of healthcare in America, Neidorff said that it is necessary to get a policy. That said, Centene will remain a physician-driven organization that is always looking out for their customers.
Cramer asked whether or not they understand what they are enrolling when it comes to their insurance plans. Neidorff said more about learning every day, but the government does not make it easy to learn or enroll. Many people still do not understand the process.
Are We There Yet?
In his "No-Huddle Offense" segment, Cramer tried to answer the question, "Has the market finally bottomed?"
There are some indicators that they can look at. One of those is the VIX, or fear of the gauge, which chartist Mark Sebastian is finally high enough to warrant a bottom. But then there 's Cramer's favorite S & P Oscillator, which indicates there might still be more weakness ahead.
Feelings have fallen, but people do not seem to be as negative as they have been in past declines, Cramer noted. The media still is not giving Wall Street wall-to-wall coverage, which is also indicative of a bottom.
When you add up all the signs, the answer is inconclusive. Cramer endorsed buying some stocks for a trade, but he is not willing to give up all-clear for the long term.
Lightning Round
In the Lightning Round, Cramer was bullish on Take-Two Interactive (TTWO), Sage Therapeutics (SAGE) and Red Hat (RHT).
Cramer was a bearish on Mazor Robotics (MZOR) and Donnelley Financial Solutions (DFIN).
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