Jim Cramer names 4 stocks that can withstand Fed tightening
CNBC’s Jim Cramer on Wednesday named four stocks he thinks could keep investors afloat in the face of market turmoil.
“As someone who thinks staying in the market is a good idea, I encourage you to consider companies that fit the funnel… while avoiding almost everything else,” he said.
“It’s not such a hard recipe, but it works as we make our way through [Federal Reserve]a cycle of aggressive tightening,” he added.
The Fed has said it plans to make a series of rate hikes this year and tighten its balance sheet to offset soaring inflation.
The Mad Money host’s comments came after the Dow Jones Industrial Average rose 0.7% on Wednesday, while the S&P 500 was flat at 4459.45. The Nasdaq Composite index fell 1.2%.
Cramer also reiterated his mantra that investors should stick with companies that make a profit, return value to shareholders, and have shares with reasonable valuations.
Here are four companies he selected that match his expectations:
“Unlike Netflix and its one-night wonders, Disney has a huge, lucrative theme park complex as well as many iconic franchises… Disney shouldn’t be brushed with the same broad brush as Netflix,” Cramer said, referring to the grim situation. Netflix. latest quarterly results.
Procter & Gamble
“Because Procter owns some of the best brands in the world, it had discretion to pass on these price increases. Procter is a classic stock at the moment: it does things at a profit, being one of the best returns on capital,” Kremer said.
Johnson and Johnson
“What is JNJ? What about the blue chips with the best balance sheets in America, who have amazing dividends and buybacks,” Cramer said.
“Morgan Stanley is the bank that may have done the best, and perhaps Bank of America as well,” Cramer said.
Disclosure: Cramer’s Charitable Trust holds shares in Disney, Procter & Gamble and Morgan Stanley.