The ‘universe of potential winners’ has shrunk, investors are picky

Investors need to be more picky due to the Federal Reserve plans to promote tightening monetary policy, By CNBC Jim Cramer said on Thursday.

“While the universe of potential winners has shrunk, there are still plenty of groups that work,” “Mad Money” the presenter said, right after Nasdaq recorded its worst day since September, down 2.47% and S&P 500 down 0.87%.

The Dow Jones Industrial Average only decreased by 0.08% as blue chips benefited from the strong performance of banking sectors such as JP Morgan and Goldman Sachs.

Finance is one area where Wall Street is hot right now, Cramer said. “Quite a lot of financing can be won here, although some more than elsewhere,” he said, noting that his charity owns Morgan Stanley and Wells Fargo.

“We just bought more Morgan Stanley for confidence during the last recession because it has no real credit risk, it’s a huge fee generator [with] “he said” very strong leadership. “No debate; just making money. Remember, we don’t want to be clever at this stage of the game. Simplicity is good.”

In addition to banks, Cramer said he also has a favorable view of a major cohort of consumers, including Clorox. He also mentioned the drug manufacturer Eli Lilly, which his charity owns, as a stock that can continue to win.

On the other hand, the “Mad Money” host warns investors about owning fast-growing companies that lack profitability. He also said the days of home builders in the sun may have passed and issued a warning about high retail supplies.

“There will be whispers that the omicron strain will cut down on shopping in shopping malls,” he said.

Register now for CNBC Investment Club to track Jim Cramer’s every move in the markets. The ‘universe of potential winners’ has shrunk, investors are picky

Emma James

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