If we’ve learned anything from the stock market lately, it means that conventional wisdom is wrong at every turn, Jim Cramer admitted to his viewers at Mad Money on Monday. That’s why markets are reaching all-time records while still in the midst of a raging pandemic.
In this market, patience is not a virtue, research is irrelevant, and discipline doesn’t really matter, Kramer said. The strategy that works is simply to buy the most obvious stocks you can think of. The market mantra is “go wrong or make a mistake” and not believing is a costly mistake.
Example: Darden restaurants (DRI) ̵
Then there is Honeywell International (SHE) – Take a report. As space and space transport are still crumbling, there is no reason for this stock to reach new heights. But again, investors are watching the pandemic.
Finally, Kramer highlighted Walt Disney Co. (DIS) – Take a report, another stock that returns to pre-pandemic levels. Most of Disney’s parks are still closed, its cruises are closed, movies are delayed and ESPN has few sports to offer viewers. But all this does not matter to investors. Investors believe that Disney will be the place to have fun once vaccines against COVID are available.
Kramer said this is an excellent example of youth investment. No experienced money manager would take these risks, but younger investors have little fear and plenty of faith. This belief may seem inappropriate given what we see in the new cases of COVID, but as a trading strategy it works.
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The vaccine pipeline
Now that drug manufacturers are coming home to the COVID-19 vaccine, our biggest challenge now is to distribute it to hundreds of millions of Americans and billions of people around the world. Kramer exposed his favorite companies to meet the challenge.
Among the challenges for vaccines are that they must be kept super cold. This means companies like UPS (UPS) – Take a report, which are expanding to cold chain logistics, are an excellent investment. Investors may also consider FedEx (FDX) – Receive a report and carrier freezer manufacturer (CARR) – Take a report.
Drug distributors are the next step in the chain, Kramer said, and among those McKeson (MCC) – Receive a report was his favorite. Shares trading for only 10 times profit.
The last step in the distribution chain will be pharmacies such as CVS Health (CVS) – Take a reportwho could see a $ 4 share of COVID vaccine profits. Cramer liked CVS along with trader Costco (EXPENSES) – Receive a report. Other players include the Walgreen Boots Alliance (WBA) – Take a report, Kroger (KR) – Take a report and Walmart (WMT) – Receive a report.
Investors may also consider Honeywell and Corning (GLW) – Get a report, two companies working on the next generation of vaccine vials that will be needed by the billions.
Executive solution: Palo Alto Networks
In his first “Executive Decision” segment, Cramer spoke with Nikesh Arora, chairman and CEO of Palo Alto Networks (PANW) – Receive a report, a cybersecurity company with shares of 26% in the last month alone.
Arora said Palo Alto Networks continues to focus on the global trends of companies moving from the data center to the cloud and from sensors to artificial intelligence. When considering the possibility, they see a total address market of more than $ 100 billion, he said.
Arora added that Palo Alto Networks has always been focused on the future and the future revolves around data and, as an extension, data security. The company has made nine recent acquisitions, including the recently announced deal with Expanse, another great product to be included in the Palo Alto product family.
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Executive solution: Corsair Gaming
Cramer also talks to Andy Paul, president and CEO of Corsair Gaming, about his second segment, “Executive Solution.” (CRSR) – Get a report, which has just published its first quarter as a public company.
Paul said that no matter how strong Corsair’s sales have been so far, there are still only a small number of gamers who have joined the first-class computers and accessories. He said the overall market for Corsair remains huge.
For those who don’t have the time or inclination to create their own gaming computer, Paul said Corsair has pre-built and configured devices, ready and waiting, many of which have industry-leading graphics from Nvidia (NVDA) – Take a report.
When asked what drives their growth, Paul explained that just like in sports, when you have better equipment, you play better. And when you play better, you enjoy the activity much more.
Better under Biden
In his hug-free crime segment, Cramer said that even after the monster’s market shot, Wall Street is still happy to soon have a president who is more lenient in trade and plans to tackle climate change.
Nothing makes Wall Street happier than a split congress with few surprises, Cramer explained. But after four years of trade wars and tariffs, investors are enjoying a softer trading stance that will attract many Boeing stocks. (BA) – Receive a report and Apple (AAPL) – Take a report to Starbucks (SBUX) – Take a report and Nike (ON) – Take a report.
When it comes to climate change, most CEOs welcome cleaner air and renewable energy. In fact, fewer oil wells will actually help with oil reserves, Kramer said, because we have too many oil supplies as they are.
Here’s what Cramer had to say about some of the stocks that callers offered during the Round Crazy Lightning on Monday night:
ViacomCBS (VIA) – Receive a report: “I would keep Viacom. I think you’re doing it right.”
Icahn Enterprises (IEP) – Take a report: “It’s hard to know exactly what they have, so I prefer to stay away.”
Whirlpool (WHR) – Take a report: “I think this stock is much higher. I think you should buy the shares.”
Pershing Square Tontine PSTH: “It’s hard for me to recommend it. I’ll focus on this one.”
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At the time of publication Cramer’s Action Alerts PLUS had a position in HON, DIS, CVS, COST, NVDA, SBUX, AAPL.