In this article, we will look at the stocks Jim Cramer highlighted during Mad Money, as he noted the rotation into defensive sectors. The host of CNBC’s Mad Money on Wednesday examined the stocks that managed to reach new highs within the S&P 500 during the trading session. He said that the list offers a clear picture of what investors are still willing to buy as market conditions become increasingly difficult.
Let’s look at what we have. These stocks that made new highs at some point. First, we have five real estate investment trusts. What does that tell you? Five REITs, defensive as they come. Then we have five insurers; those are built to last no matter what the environment. Three classic defensive stocks: Coca-Cola, Monster Beverage, and yes, I’ll call TJX defensive. Yeah, I like those, okay? We have a turnaround bank, Citi, two semiconductor capital equipment companies; those are bought after SpaceX. Linde, industrial gas; thank you, rockets, along with parts wholesaler (don’t know why), an industrial precision instruments company (don’t care). But those are outliers. Most of the names on the list are slowdown stocks.
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Cramer said that it tells him that the market is seeking safety and avoiding risk. Referencing comments from former Goldman Sachs executive Gary Cohn during an appearance on Squawk on the Street, Cramer said that Cohn had noted the progression from the FAANG stocks to the Magnificent Seven and asked what group might come next. Cramer said his response was simple: “boring” stocks. He added that income-producing investments and yield are what investors are gravitating toward now.
The bottom line: If you look at this list of what was working today, all I can say is that the people have spoken. They want safety, they want yield, and maybe they’re just sick and tired of the data center and the fast growers that now grow more slowly and represent too much risk because we’re out of money. In short, this is a market that’s lost its appetite for danger, and it’s lost its money. And I, for one, as a manager of the Charitable Trust, am thrilled to move on.
Our Methodology
For this article, we compiled a list of 25 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on June 10. We listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Jim Cramer Highlighted 25 Stocks Like Apple, UnitedHealth, and the Rotation into Defensive Sectors
25. Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL) was among the stocks Jim Cramer highlighted during Mad Money, as he noted the rotation into defensive sectors. Cramer highlighted one of the reasons the stock is getting sold, as he stated:
Whatever you do, don’t take the selling in the stocks of Apple or NVIDIA personally. I bet most of that selling is from people who think they might get some SpaceX, so they need to be able to pay for it. These two stocks have become huge sources of funds for all the new deals. People feel better about taking gains than losses. For now, they’re simply donors to the SpaceX cause. Understand, I’m not speaking ill of either stock. The opposite, I’m in explain mode here. I love Apple and NVIDIA, own them, don’t trade them.
I’m simply saying that this is what happens in the run-up to a gigantic IPO. And you know, I’ve been telling you to beware of this oversupply problem for months now. Apple and NVIDIA are readily available for sale, and they’re too juicy for some of these sellers to pass up, even as a lot of the money raised by SpaceX or Anthropic or OpenAI will probably end up buying NVIDIA equipment. Meanwhile, Apple’s spending next to nothing on AI because they have a deal with Alphabet, and it’s a great deal. The same deal that makes Google your default search engine now extends to Gemini.
Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company’s app ecosystem, AppleCare, and cloud tools.
24. BlackBerry Limited (NYSE:BB)
BlackBerry Limited (NYSE:BB) was among the stocks Jim Cramer highlighted during Mad Money, as he noted the rotation into defensive sectors. Toward the end of the lightning round, when a caller expressed interest in buying the stock, Cramer commented:
Look, BlackBerry actually is good. We’ve been looking at technology. Believe it or not, we were actually going to do a piece about why I think BlackBerry may be very interesting here. But as someone from Corning, come on, let’s go with the home team. Small, we don’t buy all at once.
BlackBerry Limited (NYSE:BB) provides secure, intelligent software, mobile application platforms, data protection, and critical event management systems, as well as asset monitoring and cryptography solutions. A caller inquired about the stock during the June 1 episode, and Cramer replied:
It’s got some really interesting technology in the auto world, and I’ve gotta tell you, I’ve been looking at it, was going to do a piece on, it kind of got away from me. I think it goes higher.
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