Nowadays, the market was a great winner and investors had to enjoy, Jim Cramer said Mad Money viewers Wednesday After months of commentary on the economic downturn, the President of the Federal Reserve made Jay Powell violently about his face, changing the pace of interest rates.
Cramer said a few weeks ago Fed saw the economy badly because housing, cars, oil and retail trade were not slowed down. But today's Powell adapts to Cramer's "one-eyed" interest rate strategy; the rate has increased more, and then it has taken a step towards evaluating economic data.
Stocks were able to go down and down, Cramer said salesforce.com (CRM) was a leading freight, with 10.2% and other FANG stocks. Amazon (AMZN) closed 6% and Apple (AAPL) ended 3.8%. The rest of the economy, like the major sensitivities, transport and industry, has added, what will happen in the bull market.
Investors are not yet out of the woods, Cramer warned that the tariffs and trade will still dominate the holders and possibly the President's Trump will increase the Chinese tariffs from 10% to 25% unless it has reached an agreement.
Today, however, investors are no longer in opposition to the Fed. Powell has proven to be a bad leader, Cramer concludes, and we must win.
More than real money, Cramer has said Fed should not depend on bank loans. Get your opinions with a free Real Money subscription.
What stock can I do?
Stock technologies can mount sustainable durability? Cramer said he was stock-based. In the case of DXC Technology (DXC), the answer is "No".
Almost two years ago DXC Hewlett-Packard was born negotiating its technological consultancy and joining Computer Sciences Corp. DXC shares increased 59% in the first 18 months, but in the last two months $ 96 fell to share $ 62.
Initially, DXC numbers cut costs. Later, the company began to grow, perspecta (PRSP) to slow down public sector businesses. As the decline in income, investors cut off the cost of earning a new DXC business.
Yesterday, a DXC analyst was upgraded, citing the company's cheap valuation. But Cramer reminded viewers that stocks are not cheap, when profits are declining. Stocks have seen a short-term bounce while reclaiming the overall market, but in the long run, the technology investors want the growth they want, because DXC simply does not.
Executive decision: Qualcomm
In its "Management Decisions" segment, Cramer spoke with Steve Mollenkopf, CEO of Qualcomm (QCOM). Shares are growing at 4.4%.
Mollenkopf will present the next 5G revolution next year and wireless carriers will have 10 hours of speed at 4G speed at 1/30 of the price. This means that companies that have Internet-connected devices are beneficial.
The dismantling of 5G will begin in the US and South Korea in spring, Mollenkopf said in Europe, half a year and following China in the second half of the year. There are many activities throughout the world to prepare for the dissemination.
Mollenkopf said that it is the 5G leader in the United States, but because of the great opportunities that the governments around the world are facing.
When Mullenkopf called for an update on Qualcomm's lawsuit in California, Mollenkopf said the two companies continue to make a ruling.
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Linde and Praxair
Investing in earned certified investments requires all the support that the investor needs. Fortunately, our government is happy to allow companies to unite with their competition.
Nothing is better than a company being a completely legal oligopoly, Cramer told the audience. That's why Linde (LIN) is an industrial gas supplier who has obtained the authorization to acquire Praxair (PX). Combinations give Linde a 32% market share, because in the United States there will be more than three major players in space.
We have seen this model before airlines. In the past years, the air travel was very competitive, and the airlines had a watch like business outside of business. But then the government approved a number of mergers, which accounted for 70% of all national flights that were controlled by four national flights. In fact, many flights have no competition.
The same thing happens with bottles and cans, where Ball Corp. (BLL) was confused by its competitors, doubled. Value shares grew by 31% per year.
Regarding Linde, Cramer said that the company has earned more than 20 times a premium and the shares are only higher.
Another threat: Non-bank loan
Now that the Federal Reserve has fallen in the interest rate level, Cramer's wisdom means that what would happen would be worse still if the stocks were dumped. One thing Powell worried about is not bank mortgage lenders, and Cramer said he was worried. too
Non-bank lenders control almost half of the mortgage market, with a different set of rules than traditional banks. Last time loans are uncontrolled, Fed wants to rule out its regulatory authority, a movement that has proven to be a major mistake.
Fed lets the power of close lenders be closed, Cramer said, domestic sales dropped, inventory rose and interest rates dropped by retailers, mobile mortgages could be a problem. This bank's non-industrial fledging.
Before the small-financial crisis, the Federal Reserve must take part, Cramer concluded.
In Lightning Round, Cramer was bullish by Berkshire Hathaway (BRK.A) (BRK.B) Axon Enterprise (AAXN), Oneok (OKE), JPMorgan Chase (JPM), Delta Air Lines (DAL), American Airlines (AAL) and Acadia Pharmaceuticals (ACAD).
Cramer was FNB Corp (FNB) and Copa Holdings (CPA).
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