Tags: jim cramer | mccormick | spice | volatile

Jim Cramer: Buy Stock in Spice Giant McCormick in Volatile Times

(Mark Lennihan/AP)

Thursday, 03 October 2019 09:55 AM

CNBC’s Jim Cramer says spice maker McCormick is a stock worth owning as the market continues its recent unpredictability.

“As long as the market remains choppy, I think this stock is the kind of stock you buy on the way down,” the “Mad Money” host said on his CNBC show.

“This is exactly the kind of name that money managers love to pile into when they’re worried about an economic slowdown,” Cramer adds.

“A straightforward consumer staple play like McCormick is just what the doctor ordered,” Cramer said. "And I like it even more after today’s pullback.”

To be sure, Bloomberg reported that the U.S. economy is losing speed, something that has economists wondering how slow the economy can go and still avoid crashing into a recession.

Whereas growth below 2% used to almost guarantee the economy would subsequently contract, some economists now reckon the U.S. can wobble around 1%-1.5% without falling over, Bloomberg explained.

The decline in the economy’s so-called stall speed is a relief after data released Tuesday signaled the weakest manufacturing sector in a decade. It still leaves the Federal Reserve under pressure to cut interest rates and President Donald Trump facing challenges heading into next year’s election.

Whether the longest expansion in history remains intact may ultimately depend on whether consumers are able to maintain spending enough to offset the slump in manufacturing amid the U.S.-China trade war.

“Suddenly the idea of stall speed is much more important today than it has been for most of the expansion,” said Stephen Gallagher, chief U.S. economist at Societe Generale SA. “The economy is running on one engine, and that’s the consumer.”

At Commerzbank AG, currency strategist Ulrich Leuchtmann told clients in a report on Wednesday that “the fact that stall speed is becoming an issue of common interest” may undermine demand for U.S. assets.

Taking a page from aviation, in which the stall speed is the slowest a plane can fly while still maintaining a level flight, the economic equivalent is the point at which growth is no longer self-sustaining.

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CNBC’s Jim Cramer says spice maker McCormick is a stock worth owning as the market continues its recent unpredictability.
jim cramer, mccormick, spice, volatile
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2019-55-03
Thursday, 03 October 2019 09:55 AM
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