Business

The universe of potential winners has narrowed, investors are picky

Investors should be more discerning as a result of the Federal Reserve’s plan to accelerate monetary tightening, CNBC’s Jim Kramer said Thursday.

“While the pool of potential winners has dwindled, there are still tons of groups that are at work,” said the Mad Money host shortly after the tech-savvy Nasdaq recorded its worst day since September, dropping 2.47% and the S&P The 500 fell 0.87%.

The Dow Jones Industrial Average was down just 0.08% as blue chips benefited from the strong performance of its banking constituents like JPMorgan and Goldman Sachs.

According to Kramer, the financial sector is the sector that Wall Street now favors. “Almost any financial sector can benefit here, although some more than others,” he said, noting that his charitable foundation owns Morgan Stanley and Wells Fargo.

“We just bought more Morgan Stanley for trust during the last downturn because it has no real credit risk, it’s a giant fee generating machine. [with] very strong leadership, he said. – No disagreements; just making money. Remember, we don’t want to be smart at this point in the game. It’s just okay. “

Aside from banks, Kramer said he also has a positive view of the major consumer cohort, which includes companies such as Clorox. He also cited his philanthropic drug maker Eli Lilly as a stock that could continue to rise.

On the other hand, the Mad Money host warned investors that they own fast-growing but not profitable companies. He also said the home builders’ sunny day may already be over and cautioned against high multiplier retail stocks.

“There will be rumors that the omicron strain will reduce shopping in malls … These sales sirens are easy to ignore before the Fed started tightening, but now we are in a half-empty market,” he said.

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