Stockchase Opinions

Jim Cramer - Mad Money Chicago Mercantile Exchange CME-N BUY Aug 13, 2025

Historically, the exchanges have been great performers, but lately they have caught fire and are outperforming the market. Tailwinds are higher stocks, more volatility in April followed by aggressive buying as investor piled back into the market. If this high volume declines, though, so will the indexes. ETFs trading is also surging as are cryptos which concerns him because cryptos are risky. He prefers that people buy and hold quality stocks. You can buy options, only if you do it carefully. Can the stock of these exchanges keep running after such a big move? Yes, and the stocks are not that expensive. Though near all-time highs, as long as these conditions, including volatility, endure, these stocks will keep winning. CME posted 16% YOY earnings growth, given an all-time high in demand for their futures in Q2. The proliferation of derivatives trading by retail investors is another boost.

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COMMENT
Because it has the futures and derivatives, it will eventually be one of the major beneficiaries.
PARTIAL BUY

Dominant treasure futures market company. Very good dividend history. Would recommend buying. Would watch for competitors, but if other companies not able to compete - would be a good investment. Cautiously optimistic on outlook. 

PAST TOP PICK
(A Top Pick May 06/24, Up 34%)

In times of volatility, exchanges actually do very well because the trading goes up. Derivatives exchanges tend to be higher margin, as their products are usually proprietary.

BUY
gold

Gold benefits from fears of inflation and central bank's concern over the USD. Since tariffs started, the price has been rocky with a slight decline. The problem isn't gold itself, but people owning gold maybe deleveraging across the board during this steep sell-off. If tariffs are long-term and therefore inflationary, gold prices will rise. He owns no gold. He buys dividend stocks. CME yields 2% + special dividends, which avoids exposure to the underlying commodity. Rather, CME takes a cut whenever there's a trade in commodities like gold, like now.

BUY

Put this on your list. All the exchanges are trading well.