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When will the sale end? Jim Cramer told his Crazy money viewers on Tuesday, they should not expect an end to the pain before Apple (AAPL) be removed from the tariff and commercial war.
At the moment, fund managers are flocking to recession stocks, those that are doing well in times of economic downturn. That's why we are seeing strong gains at Johnson & Johnson (JNJ), Clorox (CLX) and PepsiCo (PEP). That's also why Verizon (VZ), yes Verizon, is one of the biggest winners of recent weeks.
Cramer explained that fund managers chose these selected stocks because if Apple became a problem in the trade war, nothing would be safe.
In fact, Apple's decline began the day after Vice President Mike Pence's first speech, which included a tough speech against China in early October. Since then, every event has been viewed negatively and Apple stocks have lost 25% of their value in just two months.
Trading at only 12 times the profits, Apple is incredibly cheap. But Cramer said that as long as Apple is not removed from the trade war, it will be very difficult to own shares.
Cramer and the AAP team are studying the impact of the news on the rates in their portfolio. Find out what they say to their investment club members and join the conversation with a free trial subscription at Action Alerts PLUS.
Executive decision: Salesforce
For his Executive Decision segment, Cramer welcomed Marc Benioff, president and co-CEO of Salesforce.com (CRM), after a strong new quarter.
Benioff said that Salesforce remains the fastest growing business software company of all time and continues to grow until 2019 and beyond. He explained that every business is undergoing a digital transformation, and every transformation must begin and end with the customer relationship.
In the case of Uber, Salesforce helps the company not only improve relationships with their customers, but also their drivers and the communities they serve. Salesforce also has an excellent partnership with Apple. All of its products are now running natively on all Apple iPhones and iPads.
Benioff added that for many companies, rebuilding the sales relationship is just the beginning. That's why Salesforce offers apps for sales, customer service, marketing, analysis, application creation, community, and more.
Read: Salesforce.com increases in late trading after exceeding estimates
Call it like that
If you are an investor looking for someone who is always bullish, Cramer is not your type. "I call them as I see them," says Cramer, and that's why you always get his honest opinion.
Being a permanent bull is not a wise investment strategy, explained Cramer, nor helpful. At the moment, the market risks that our president and the Federal Reserve are doing bad things with respect to rates and interest rates. Cramer said that he saw a lot of risks, but not much potential at the moment, which is why he remains cautious.
Cramer has recommended selling everything only three times. The years 1987, 2000 and 2007 were both the best.
But this is not the current market situation, added Cramer. There are a lot of things that can go wrong for stocks, he said, which is why they come across bad news, but not good news. But once you understand these risks, you can make informed decisions, decisions that will change as the situation changes.
As for real money, Cramer said that before the G-20 and Jay Powell's speech, we are at an important turning point and that he wants people to become aware of the dangers. Get more of his ideas with a free trial subscription to real money.
Out of the charts
In the "Off The Charts" segment, Cramer interviewed his colleague Mark Sebastian to see what the CBOE Volatility Index, called VIX, can tell investors about the direction the markets will take.
Sebastian looked at a daily chart comparing the S & P 500 and the VIX over the last four months. In general, the pair has an inverse relationship, with volatility increasing as the market declines.
After peaking on Oct. 11 at age 29, the VIX hit a record high on Oct. 24, signaling to Sebastian that a fund was forming. Indeed, the S & P hit bottom a few days later and relief followed, during which the VIX withdrew.
Sebastian noted that there was very little panic during this last stage of the bear market, as the VIX remained relatively quiet. This is not the first time, however, that the market is falling without increased volatility.
In February, we observed a similar trend: the first part of the decline experienced a peak of the VIX, but the second part of the decline in March was unfurled.
Prohibited offense
In his "No-Huddle Offense" segment, Cramer has highlighted some of the actions he still enjoys in this bear market. He said Five Below (FIVE) was a great story of regional to national growth and that even though the stock could be affected by higher rates, it was still a winner.
Canada Goose (GOOS) sold strong today after a secondary offer, but Cramer said this weakness was a gift for a stock up 99% for the year and still offering a lot more leeway. maneuver. Canada Goose just returned a 20 cents per share gain for a monster.
Finally, Constellation Brands (STZ), the maker of wines and spirits whose shares have lost the favor of Wall Street, investors fearing the disruption caused by cannabis. Cramer said that he was not worried because Constellation is a fabulous operator, with a stake in Canopy Growth (CGC).
Can all these names fall further? Of course that they can. But Cramer said that if you could withstand some short-term pain, you will be rewarded with long-term gains.
Lightning Tower
In the Lightning Round, Cramer was optimistic for MongoDB (MDB), Ventas (VTR), Analog Devices (ADI), Iridium Communications (IRDM), Citigroup (C), JPMorgan Chase (JPM), Boston Scientific (BSX) and PPL Corp. (PPL).
Cramer was bearish on Welltower (WELL), Huntington Bancshares (HBAN), Randgold Resources (GOLD) and LKQ Corp (LKQ).
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