With the worst sell-off in months slowly abating, CNBC’s Jim Cramer warned investors about what could spur more selling in the weeks ahead.
“We still need to worry about interest rates,” the “Mad Money” host said. “If the yield on the 10-year [Treasury] keeps moving appreciably higher next week, it’s going to trigger another round of selling in stocks, which is why you need to watch the 10-year like a hawk.”
But even with interest rates and risky volatility trading vehicles wreaking havoc, Cramer was able to find a silver lining.
“What goes down can go up,” he said. “Sure, the economy’s booming, but if the bond supply can be absorbed and the raw costs and wages levels be tamed … then what will happen? Well, the selling onslaught will stop and you’ll wish you bought some stocks right here.”
After the worst week for the market in two years, the height of the financial crisis, Cramer stuck to his mission to keep investors’ fears at bay.
“You’ve heard it all, and I just have to keep in front of you that much of the selling we saw [Friday] was deeply related again to the incredibly large bets against volatility made by clueless money managers who expected things would remain calm as they had for ages,” Cramer said. “But in the end, we rebounded.”
Keeping these risky bets in mind, Cramer turned to his game plan of stocks and events to watch in the week ahead.
Even in a gyrating market like this one, sometimes the bargains are right in front of you, Cramer said on Friday as the major averages lifted from their lows.
“I don’t want to say that the pain is over, but you should certainly prepare for more days like today. Remember, we’ve seen this movie before. The last time the market got crushed like we’ve seen over the last week was in January of 2016,” Cramer said. “It turned out to be an epic buying opportunity, as the market rallied 10,000 points over the next two years.”
As focused as Cramer was on finding good buys, he also wanted to get a better sense of the market layout.
“You need to be systematic with your bargain hunting, so … I want to go over the 10 biggest recent decliners in the Dow Jones Industrial average.”
When people think about 3M, the 115-year-old maker of Scotch Tape, they might not associate the old-line consumer goods manufacturer with electric cars.
But that’s not how 3M Chairman and CEO Inge Thulin sees it, he said in an exclusive interview with Cramer.
For Thulin and 3M, an old-line manufacturer serving a host of different industries including health care and transportation, auto electrification is just another market.
The CEO detailed three elements of 3M that put his massive multinational squarely at the center of the electric car trend: its longtime involvement in the automotive, electronic and energy, and traffic safety industries.
Cybersecurity chief Gary Steele, the CEO of Proofpoint, warned Cramer about the intersection of the red-hot cryptocurrency trend and cyberattacks in an exclusive interview on Friday.
“We still see a new variant of ransomware every few days,” Steele said. “One of the things that is kind of interesting is as cryptocurrencies become in vogue and everybody’s talking about it, … cybercriminals are actually targeting individuals that have cryptocurrency.”
But that’s not all. Cyberattackers have also developed capabilities to “infect” personal devices like laptops and install programs that mine for cryptocurrency, Steele said.
“Everybody’s got a device and everybody’s got a little compute power that can be allocated towards cryptocurrency mining,” the CEO said. “So cybercriminals follow the money.”
In Cramer’s lightning round, he tore through his take on some callers’ favorite stocks:
Teladoc: “My problem with Teladoc is there are many people coming into that segment and they are not necessarily playing for big money. So let’s say ix-nay Teladoc-nay.”
Kratos Defense: “Kratos is good, but why go with that when you’ve got all these big dogs that were down so much into this VIX-related sell-off?”
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