Buy falling oil stocks, stay away from everything else
CNBC’s Jim Cramer said on Monday that the only equity investors should buy the dip are oil names.
“I want to be nice to this market and tell you it’s the same old game plan buy the dips. But really the only dip that can be bought right now, at least, is the dip in oil. Everything else is, as they say now damningly, transactional and nothing more,” the “Mad Money” host said.
Cramer said there have been several recent stock market disappointments in the market that have made him wary of non-oil names. He noted that AMD shares fell days before its analyst meeting on Thursday, and he expects Apple analysts to downgrade the iPhone maker’s stock if its worldwide developer conference struggles. to excite the “raging bears”.
“When [stocks] start strong, there’s a good chance they’ll die by noon,” he said.
Elon Musk’s public spat with Twitter over his acquisition deal is another source of market disappointment, Cramer said.
Yet for oil, even when sellers come in, buyers come right back and keep the stock afloat, according to Cramer, which sets these stocks apart from others in the market.
Disclosure: Cramer’s Charitable Trust owns shares of AMD and Apple.