The major indexes busted out of a slump on Thursday and CNBC’s Jim Cramer pinpointed several unexpected market tailwinds, telling investors to look for this kind of action instead of obsessing over news from the Federal Reserve.
“The idea that you should only care about how many rate cuts we get this year is an absurd way to run your own money,” he said. “I’d rather look for these unexpected tailwinds that affect individual companies. It’s much more helpful than playing the pedestrian parlor game of guessing the Fed’s next cut or increase.”
Thursday morning Bank of America gave Apple a major upgrade and Cramer called this analyst report a “breath of fresh air,” noting that Apple finished the session up 3.26%.
According to Cramer, the return of Japan as a notable player in mergers and acquisitions is another tailwind. He said their market is doing well and he expects more deals in the future. He pointed to Sekisui House‘s Thursday announcement that it would buy U.S. homebuilder MDC Holdings, as well as Nippon Steel‘s acquisition of U.S. Steel last month.
Cramer said activist investor Nelson Peltz’s proxy fight to get into Disney‘s boardroom could lead to higher value for the company. He added that Alphabet‘s recent slew of layoffs could lead to a run for the stock similar to Meta‘s trajectory after the company cut costs last year.
Above all, Cramer reminded investors not to trade, but to research and identify stocks they believe in for the long term.
“Invest, don’t trade,” he said. “That’s the real edge you have as an individual investor. Don’t squander it.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple, Disney, Meta and Alphabet.
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