Jim Cramer’s Investment Book for the Covid omicron Option

CNBC’s Jim Cramer on Monday outlined his investment scenario for two economic scenarios that could materialize as a result of the Covid omicron variant.

The heavily altered option scared some investors, especially during Friday’s shortened session, during which the Dow Jones Industrial Average recorded its worst day since October 2020. However, US stocks closed higher on Monday as President Joe Biden indicated that broad economic restrictions are not in place at this time. t is necessary.

Kramer agreed with Biden, saying that stringent restrictions similar to earlier stages of the pandemic are unlikely. However, the Mad Money host said the Covid omicron option could have an economic impact and investors need to prepare accordingly.

Slow down

If the spread of an option reaches a point that ultimately causes a slowdown in economic growth, Kramer said his best bet for stocks is Amazon.

“This is a company that feels good when people are afraid to go to the mall. And that’s a good thing because more and more companies are using the cloud, because Amazon Web Services is truly the dominant player in cloud infrastructure, ”he said, arguing that the move to cloud technology will continue even if overall economic growth stalls.

According to Cramer, Microsoft is another great way to play on the potential slowdown caused by the omicron. “We know their products sold well during the initial lockdown and did not stop during the subsequent Delta variant opening or panic. I look forward to continuing to update the software at the enterprise level, ”he said.

Kramer said he also likes tech giants Netflix and Alphabet, which continue to make progress in this eventual scenario.

Beyond technology, Kramer said utilities like American Electric Power and healthcare providers like UnitedHealth Group are well-suited.

Kramer said the riskier approach for investors includes homeowners, who benefit from the non-negotiable interest rate hike, and retailers, who benefit from home spending.

Bounce back

Likewise, Kramer advised taking a look at hotel operator Marriott the next time negative news about omicron triggers a pullback in that basket of stocks. Apparel retailers like Macy’s and American Eagle Outfitters should also be in good shape if the US economy continues to return to something of a normal, Kramer said.

“I’m not necessarily saying that the economy can continue to operate without overheating, now that we have a new option, but this is a real opportunity, and you must be ready for this,” he said.

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