Today, Jim Cramer - Mad Money and David Burrows commented about whether CRM-N, GOOG-Q, NVDA-Q, ATS-T, STN-T, JPM-N, CVE-T, MFC-T, MSCI-N, TT-N, TVE-T, TSM-N, LLY-N, CSCO-Q, GD-N, RIO-N, NTR-T, INTC-Q, DOO-T, LSPD-N, SU-T, HBM-T, TECK.B-T, TOU-T, CNQ-T, GOOG-Q, NOK-N, META-Q, UNP-N, BIIB-Q, SKT-N, AXP-N, KO-N, BRK.A-N, BOWL-N, TDOC-N, ASML-Q, F-N are stocks to buy or sell.
We have been in dis-inflationary times for 40 years but are now in a re-inflationary period with higher than historical inflation and interest rates. Rates can continue to rise over a long period of time but it may be that the economy and employment can handle it. Therefore we need to readjust our views as to what might happen in a rising rate environment. Investors worry about something breaking but we are not necessarily seeing signs of this. There is some improvement in supply chain issues but there are still some sticky areas. Re-inflation develops in steps so we now need to look at what works in this type of environment. Technical and growth stocks don't do as well as stocks with good yields.
It is part of a common theme - a lot of tech related higher multiple stocks are in for tougher times. We had a long tech cycle which fell substantially last year. The sector has had a nice bounce this year but has some proving to do. With yields on 10 and 30 year bonds ticking higher it becomes less attractive for investors to pay for higher multiples. Also many people have bought at higher prices and are anxious to sell if it moves higher to get some or all of their money back. This type of investor has to be cleared out before a sustained rally.
It has traded as high as $140 and is good to buy at today's price. However use caution if it goes below $94 or $93. The summer is a better time since during the growing season more fertilizer is needed. There are concerns around the order levels because prices are up but it should be fine.
Zuckerberg is the most determined CEO to make money for his shareholders. He has cut spending--operational and capital expenditures.