Investors can wait for more days like today, days when some stocks are red hot while others are plummeting, Jim Cramer told his Mad Money viewers on Monday.
Until we hear what the Federal Reserve has planned on Wednesday, Cramer said investors are likely to continue to abandon industry and banks in favor of secular growth names.
The stock market is indeed a market, after all, one made up of thousands of different stocks. That means it is rarely marketed as a single entity, Cramer reminded viewers. But before hitting the “buy” button on his favorite growth stocks, Cramer reminded viewers that not all growth is equal.
In a shopping aisle are what Cramer called the senior growth stocks, tried and true names like FAANG (Cramer’s acronym for Facebook (full board) – Get report, Amazon (AMZN) – Get report, Apple (AAPL) – Get report, Netflix (NFLX) – Get report and alphabet (GOOGL) – Get report), together with Microsoft (MSFT) – Get report, Adobe Systems (ADBE) – Get report, Square (SQ) – Get report and PayPal (PYPL) – Get report. In another aisle of this market are junior growth names like Twillio (TWLO) – Get report, Year (YEAR) – Get report, Etsy (ETSY) – Get report and DocuSign (DOCU) – Get report. Cramer remains a believer in high-level names, but felt that minor names can be risky.
Similarly, Cramer said he is unwilling to give up growth in steel, mining and oil. This is because even if the United States curbs interest rates, which it does not believe will happen, the rest of the world still has a lot of growth ahead of it in the coming months.
In Cramer’s view, the Fed is willing to sacrifice a little inflation if it means creating jobs and putting more people to work. That’s a recipe for many sectors to continue their rally to new all-time highs.
Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what your investment club members are being told and join the conversation with a free trial subscription to Action Alerts Plus.
Off the charts: Independence Day patterns
In the “Off The Charts” segment, Cramer contacted his colleague Larry Williams to learn the direction of the markets. This time, Williams looked at the market through the prism of the seasonal patterns of July 4.
Williams noted that the last week of June is historically the worst time to sell stocks, as stocks are always sold during that week. However, the week before, specifically the last eight or ninth trading day of the month, has proven to be a success. This year, those days would be Friday June 18 or Monday June 21.
As for buying their shares, Williams said five days later is the sweet spot, or the first day of vacation, when the market is trading higher.
This strategy has been a winner 21 of the last 22 years.
Executive Decision: American Express
In his first segment of “Executive Decision,” Cramer spoke with Steve Squeri, president and CEO of American Express. (AXP) – Get report, which has recovered 38% so far this year.
Squeri said the consumer looks much better than we expected coming out of the pandemic. Credit debt is down, personal savings are up, and there is a lot of pent-up demand to get out and spend. Even in the troubled travel industry, Squeri reported that May 2021 bookings are 95% of what they were in May 2019.
American Express is becoming a way of life, Squeri added, and that’s good for millennials who want access and experiences, which American Express can provide.
Moving on to the topic of small businesses, Squeri noted that small businesses love American Express too, and thanks to their recent acquisition of Cabbage, a digital cash management platform, they can now provide more services to businesses than ever before.
American Express is also working hard to support minority-owned businesses. Squeri said they offer access to capital, grants, mentorship and leadership training to minority businesses.
On Real money, Cramer talks about the companies and CEOs he knows best. Learn more with a free real money trial subscription.
Look up Jim Cramer’s “Mad Money” business recommendations using our exclusive Stock Analyzer “Mad Money”.
To view reruns of Cramer video segments, visit the Mad Money Page on CNBC.
To sign up for Jim Cramer’s free Booyah! newsletter with all your latest articles and videos please click here.
At the time of publication, Cramer’s Action Alerts PLUS had a position on FB, AMZN, AAPL, NFLX, GOOGL MSFT, PYPL.