Homepage / Investment / Cramer on how stock-picking in this market is like good fishing
Disney is better off not meddling with Hulu, despite bigger ownership share Disney to buy 21st Century Fox assets for $52.4 billion in stock; Bob Iger to stay on through 2021 Bank of England unanimously votes to hold interest rates, shifting focus to inflation Bitcoin futures could be coming to Germany soon: Report Putin abandons United Russia party, will run as an independent in 2018 election HSBC's currency expert gives his best trades for 2018 Tax reform should not hurt US trade partners, says top EU official All you need to know about the top 5 cryptocurrencies South Africa's Sibanye-Stillwater to buy troubled platinum producer Lonmin IBM teams up with Samsung, JPMorgan to develop quantum computing Greece should only get a debt deal after its bailout is finished, new Eurogroup president says Europe markets set to open lower after Fed meeting; investors await ECB decision Germany’s in the middle of a deep political crisis, but it won't affect the euro Meet the new euro zone finance chief, who’s promising a fresh response for the embattled region Brexit will be a key challenge for 2018, says next euro zone finance chief South Korea's President Moon heads to China to mend ties. Beijing needs a few favors too Australia accused China of political interference, and Beijing isn't happy China just released a bunch of economic data that was in line with expectations China lifts market rates, following move by Fed China and India are fiercely competing to control an airport that basically nobody uses Chinese state press slams Western 'paranoia' for suspicions of infiltration Microsoft doesn't have a flashy assistant like Alexa, but its A.I. is trying to change how you work Cramer says Fox deal will give Disney the scale it desperately needs Just Capital's Dan Hesse: Companies that do good things have roughly 33 percent higher returns Asian markets to focus on Fed's third rate hike of the year; US dollar slides Cramer: Bull markets 'die on euphoria,' and we're one step away There's a one-bedroom condo for sale in Miami — and the seller will only accept bitcoin Apple co-founder, ‘father of the internet’ to FCC: ‘You don’t understand how the internet works’ Satya Nadella wishes Microsoft had got into the public cloud business sooner This elevator goes up, down and sideways, and could be the key to taller skyscrapers Apple has a $1 billion fund for US manufacturers, but it could invest more, said COO Jeff Williams Fed raises rates a quarter point, hikes growth outlook for economy You should update your iPhone now, as the new software fixes a pretty big bug Ivanka Trump’s brand repositions at home, soars in Asia 'Nobody has built a money-printing machine like Apple,' VC Jason Calacanis says These 90 private companies are reshaping the space industry, says Morgan Stanley Gundlach says if you bet against bitcoin today 'you'll make money' Uber's culture issues can be blamed on Silicon Valley's hunger for fast growth: Arianna Huffington Google, Facebook founders were naive about propaganda, extremist content, say Silicon Valley titans Gundlach: Tax plan could have some' unintended consequences,' hurt junk bond market Cramer: People will fight it, but Apple's investment in Finisar is a 'fantastic' deal Facebook found just three Russian-bought Brexit ads, amounting to less than $1 Overstock.com shares spike after blockchain unit announces for-profit property registry Dow stock Boeing is on track for best year in nearly 4 decades, but the charts point to trouble Another bitcoin rival leaps to a record high, surpassing litecoin's market value Martin Sorrell: Finalized Disney-Fox deal would be a top media investment for us What to expect in Yellen's swan song: 'She's not a showboater' Target to buy grocery delivery service Shipt for $550 million When politicians and executives get caught out Some of Facebook’s early friends now its sharpest critics US says hacker to plead guilty for role in 2016 cyber attacks Laser chip maker Finisar jumps 25% on news that Apple's investing $390 million in the company The Amazon Echo now lets you play Spotify across all of your Echos Citi has 5 reasons — including tax reform and global growth — why Apple can keep crushing market Facebook will start streaming WWE professional wrestling next month Deregulation, global stock rally to 'propel' Morgan Stanley higher in 2018: KBW analyst A new law bans Kaspersky software from use in the US government Bitcoin 'dwarfs' nearly all bubbles, including 1929 crash: Investor Ken Fisher How 2017 became a turning point for tech giants The biggest risk you face when choosing between a human and a robo-advisor Disney deal with Fox would be a ‘home run’ in its battle against Netflix, Amazon, analyst Ives says Stocks making the biggest moves premarket: HON, LLY, AMGN, TM, HD & more Apple's 'innovation complacency' could see it lag Google, Amazon in post-smartphone world, study says Cryptocurrency market now worth $500 billion, more than Warren Buffett's Berkshire Hathaway Tesla stock is up 12 percent in a week — but it could be time to pump the brakes Why Donald Trump's Jerusalem move might have made Russia a lot stronger Weekly mortgage applications fall 2.3% as rates rise Apple invests $390 million into Finisar, which makes laser chips for iPhone X and AirPods Leuthold's Doug Ramsey reveals top sector picks, bullish market predictions Tillerson says the US is ready to begin direct talks with North Korea German stock exchange operator Deutsche Boerse experiences trading disruption Russian court freezes $1.7 billion of Sistema assets at request of Rosneft A top Facebook exec is jumping on the bitcoin bandwagon ECB set to lift its growth outlook as massive bond-buying slowly winds down Swedish fintech start-up iZettle raises $47 million; CEO says 'time will tell' for IPO plans Google's top searches in 2017: Hurricanes, Matt Lauer and Tom Petty Google is blocked in China, but that's not stopping it from opening an AI center there UAE oil giant must build regional 'credibility' ahead of Saudi Aramco IPO next year European markets set to tread water ahead of Fed's decision Founder of a would-be tech powerhouse is blacklisted by China for allegedly disobeying court order Japanese start-up ispace just secured funds for first two lunar missions starting in 2019 China's GDP growth set to plunge to near 30-year low in 2018, ADB warns FBI agents called Trump an 'idiot' during presidential race South Korea may tax capital gains from cryptocurrency trading Japanese e-commerce firm to launch program for tech startups in Singapore I was wrong about bitcoin. Here's why Free money from China comes with strings — as one country's learning the hard way This power couple bought bitcoin in 2013, donated gains to cancer hospital Cramer Remix: What being young and broke taught me about the stock market Companies must have 'a culture of security' to prevent cyberattacks, McAfee CEO says Cramer's charts predict full speed ahead for industrial stocks like Caterpillar, Honeywell Asia markets take cues from a mixed US trading day ahead of Fed decision Cramer finds value-creating, investment-worthy CEOs across industries Novogratz says he would sell litecoin after its surge, sees bitcoin hitting $40k within a few months Here's why bitcoin prices are different on each exchange This start-up is making remote-controlled robots that can do surgery in space Apple’s up 43,000 percent since its IPO, and could soon surpass $1 trillion in market cap MongoDB falls despite earnings beat Why investors should beware stocks getting the bitcoin boost Billionaire investor Druckenmiller: ‘I love Amazon' more than Apple

Investment

Cramer on how stock-picking in this market is like good fishing

In many ways, CNBC’s Jim Cramer finds each trading day in the stock market to be very similar to a good fishing trip.

“This is like fishing, catching a 40-inch edible fish every day, each different from the day before,” the “Mad Money” host said about the bounty of high-quality stocks.

Wednesday’s catch was the stock of McDonald’s. Shares of the fast-food chain broke out to all-time highs on practically no news, closing above $163 a share. Despite its lack of obvious upward drivers, Cramer said the inevitable analyst recommendations would likely help, not hurt.

Also swimming higher were shares of PayPal, which was upgraded to “buy” from “hold” by a major firm that argued worries about PayPal’s negotiations with eBay were overblown.

“This was a gift. I’m calling it a 40-pound striper caught surf casting,” Cramer joked.

But Cramer couldn’t help but wonder why such different situations are all working for these stocks, so he compiled a list of reasons for why the market is brimming with winners.

The final months of the year are usually when big funds start thinking about their performance and turn to the stock market to solidify their gains so they don’t lose clients, Cramer said.

“You can’t show performance in this market without buying stocks,” he added. “It’s that simple: for money managers, you know what this period is? This is the buy or die period.”

President Donald Trump’s pro-stock market standing has also made a difference, Cramer said. While his health care and tax reform initiatives have been obstacle-ridden, his pro-business position has resonated with companies that feel less worried about strict regulations.

“You can tell from his tweets that he grades himself by the performance of the S&P 500 the same way he graded himself with the Nielsen ratings when he started ‘The Apprentice,'” Cramer said. “I know he disbanded the economic councils, but he still has those contacts and he knows what sends the stock market higher.”

As the market outlook grows more positive, analysts are scrambling to present their clients with new stocks that seem to have promising stories, the “Mad Money” host said.

“If you work at one of these larger brokerage houses, your research director is in your face begging you to put out some new names knowing they’ll pop,” he explained.

Bad news from Greece, Italy and France used to dominate headlines, but these days, Cramer sees the global playing field rapidly improving.

Japanese stocks are soaring, European economies are gaining momentum, Brexit worries have subsided and the conflict between Spain and Catalonia hasn’t been as market-rattling as feared.

A slower news cycle has had little to no effect on stocks save for the potential for a December interest rate hike by the Federal Reserve to taper the strength of the economy.

That would cause the bank stocks, which report earnings on Thursday and Friday, to surge higher and flaunt larger price-to-earnings multiples, Cramer said.

Investors’ exuberance can’t last forever, but what has surprised Cramer most has been the lack of “over-fishing” in any one stock.

“Some are game fish like Nvidia, hitting an all-time high on autonomous driving chips. Some are the bottom fishers: Intel, AMD, Kroger. Some are brick-and-mortar retailers that typically rally for a few days, then you’ve got to toss them back. Those are strictly catch and release. And some are just delicious dinners like McDonald’s, Visa, MasterCard, Wal-Mart, visible from the surface — branzino — capable of being lured in with some chum and a couple of dumb minnows,” Cramer said.

Bad, “inedible” stocks do persist: the oil cohort has been very volatile of late, and consumer packaged goods companies that aren’t prime for takeovers have been pummeled.

“As the legendary Ella Fitzgerald sang in ‘Summertime,’ the fish are jumping [and the] cotton is high,” Cramer said. “If you don’t grab a pole, though, and buy some bait, it’s all going to be lost on you as it is on so many Americans who don’t know a rod from a reel.”

Disclosure: Cramer’s charitable trust owns shares of Nvidia. Also, “The Apprentice” airs on NBC, which, like CNBC, is owned by Comcast’s NBCUniversal unit.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagramVine

Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com

Source: Investment Cnbc
Cramer on how stock-picking in this market is like good fishing

Comments are closed.