Jim Cramer, from CNBC, stated that two factors that have been continuously plaguing the market are making stock investing increasingly difficult, but this does not mean that investors should withdraw.
He said that what is referred to here are oil prices and bond yields, which have always been key factors affecting the market. When they rise, stocks tend to come under pressure. Monday is no exception.
As U.S. Treasury yields soared at the beginning of this week, the stock market declined. The Dow Jones Industrial Average fell by 347 points, a decrease of 0.7%; the S&P 500 Index and the Nasdaq Index fell by 0.8% and 0.9% respectively.
However, as reports emerged that U.S. President Donald Trump was willing to provide Iran with sanctions relief on nuclear issues, crude oil prices fell, and the market recovered somewhat from its midday lows. But before that, oil prices had already soared significantly when Trump's stance was not so optimistic, and the losses were sufficient to ensure that the stock market still closed in a downward trend.
Cramer stated that it is not the right approach for long-term investors to decide to exit the stock market every time there is a fluctuation in oil prices or the bond market. On the contrary, it is more important to select companies that can continue to perform well even in more challenging environments.
"You have to look at which companies have demand, pricing power, and scale," he added. "If they possess all three, then the impact of the higher interest rates resulting from the war with Iran will not be so significant on them."
Cramer first mentioned Meta Platforms and Intel, stating that these two stocks "fit the current environment." He noted that both companies are entering a new product cycle, and there is strong underlying demand.
In terms of Meta, he highlighted Muse, which is the company's newly launched personal artificial intelligence assistant. He said that this product could ultimately reach billions of users. “Meta has performed exceptionally well in this regard, and I bet its market share will be much larger than that of OpenAI; compared to the company founded by Zuckerberg, OpenAI is still just a niche player.”
As for Intel,克莱认为 that as the demand for central processing units used to drive the AI proxy increases, this company is expected to benefit. He praised the CEO, Chen Liwu, for his more restrained spending strategy and the efforts to revitalize the chip manufacturing business. “I am fully convinced that his plan to bring Intel back to greatness will succeed.”
Kramer also mentioned Microsoft, stating that the company "is quietly becoming a force through Co-Pilot"; he is also optimistic about Apple, expecting that the launch of its first foldable screen phone will bring positive benefits.
Outside of the technology sector, Kramer pointed out that energy is one of the few areas that can directly benefit from rising oil prices. He mentioned Chevron due to its global production layout and balance sheet; he also mentioned Enbridge because of its dividend yield of around 6%; as well as Enterprise Products Partners due to its natural gas exposure.
Despite acknowledging that it is more difficult to find opportunities in the current environment, Kramer still stated that there are still stocks worth holding in the market. "At such times, one must strive to find those stocks that can perform well in the turbulent and negative environment we are in."
"You can't give up; you can't say 'we're in an impossible situation.' You have to double down on the winner," Kramer concluded, "There is a chance."
CNBC Investing Club oversees Cramer, which in turn holds shares in AAPL, INTC, META, and MSFT through Charitable Trust.
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