Tags: jim cramer | buy | stocks | rout | invest

Jim Cramer: Buy These 8 Stocks in Wake of Brutal Rout

By    |   Friday, 12 June 2020 12:42 PM

Investment guru Jim Cramer assured wary investors of finding buying opportunities in the continuously volatile stock market.

Wall Street's main indexes rose on Friday, after a steep decline in the previous session, but were still on track for their worst week in nearly three months on fears of a rise in new coronavirus infections and economic worries, Reuters explained.

On Thursday, the tech-heavy Nasdaq ended about 5% below its record closing high and the S&P 500 tumbled nearly 6% in their worst day since mid-March, as the Federal Reserve's indication to a long road to recovery and rising COVID-19 cases in the United States cast a pall over investor bets on a swift economic rebound.

“In a tough market, you need to circle the wagons around the few good names you feel comfortable buying and then buying more if they go lower, because they might in case the neophytes are in there,” the “Mad Money” host said on CNBC. “And those recovery plays, sadly, they’re not recovering,” he said.

Cramer advised that investors be careful when putting more money to work here, foreseeing further moves lower.

“That’s why you need to tread carefully when you buy, because when these novices start capitulating we could get another leg down. However, you should start putting money to work,” he said.

“You go with companies that will be able to hit their numbers regardless of how badly this economy gets hit by all these new COVID hot spots,” he said.

He recommended stocks that are offering attractive dividend yields and are well off their highs, like PepsiCo (PEP).

Companies riding secular themes and others reinventing themselves are also good buys, said Cramer.

He also suggested:

  • Nvidia (NVDA),
  • AMD (ADM),
  • Broadcom (AVGO),
  • PayPal (PYPL),
  • Nike (NKE),
  • Apple (AAPL),
  • Facebook (FB).

To be sure,  the S&P 500 is now about 10.8% from its record high after being within 5% from that level earlier this week.

"Perhaps the markets have overestimated their fears about the reignition in number of cases," said Todd Jablonski, chief investment officer at Principal Global Asset Allocation in Seattle.

"In the short term you could see some investors, particularly retail investors who have been moving into the equity space pretty aggressively over the last couple of weeks, take some profit."

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Investment guru Jim Cramer assured wary investors of finding buying opportunities in the continuously volatile stock market.
jim cramer, buy, stocks, rout, invest
Friday, 12 June 2020 12:42 PM
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