Jim Cramer, the host of Mad Money, on Thursday addressed the sharp downturn in markets driven by mounting concerns over deteriorating bank loans. He said the latest developments could give the Federal Reserve a reason to lower interest rates.
“Today got real ugly, but at least we finally have something that can make the Federal Reserve itchy to cut interest rates sooner rather than later: bank loans gone bad. Nothing motivates the Fed to move faster than credit losses, because they’re a definitive sign that the economy is going south.”
READ ALSO: Jim Cramer Recently Discussed These 8 Stocks and 6 Stocks on Jim Cramer’s Radar.
Cramer pointed out that there are early indicators suggesting it is time to ease, and that the volume of questionable loans reported within just one week is enough for the Fed to justify cutting rates without being overly concerned about stoking inflation. He also acknowledged the market’s negative response to the worsening credit picture. Cramer said that until the Fed moves, banks may continue tightening lending standards, which could lead to reduced access to credit and potential job losses.
“The bottom line: Those real economy stocks will be the winners in the rate cut scenario that I see playing out. Those stocks have been in the doghouse long enough… The speculative ones, please join the monster sellers we saw today and ring the darn register on at least part of your holdings. Enough money’s been made in that cohort already. You don’t want to give it back.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on October 16. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 hedge funds.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Recently Offered Insights on These 11 Stocks
11. Martin Marietta Materials, Inc. (NYSE:MLM)
Number of Hedge Fund Holders: 64
Martin Marietta Materials, Inc. (NYSE:MLM) is one of the stocks Jim Cramer recently offered insights on. A caller, who began buying MLM shares before a recent rally, noted the stock hit a 52-week high, and despite a pullback, they are up 36% and asked what they should do with their position. Cramer stated:
“Just hold it. I wouldn’t buy more. No need to sell it. It’s just a great long-term hold. By the way, so does Vulcan Materials, one of the greatest stock performers of all time. It’s really kind of a duopoly.”
Martin Marietta Materials, Inc. (NYSE:MLM) supplies aggregates, cement, concrete, and asphalt for construction, infrastructure, and industrial projects. In addition, the company produces magnesia-based chemicals and dolomitic lime used in steelmaking, soil stabilization, and environmental applications. During the September 3 episode, Cramer mentioned the company and commented:
“Okay, what’s going on with the stock of Martin Marietta Materials… Over the past few years, this company’s been a big beneficiary of federal infrastructure spending, and there’s still a lot of money left in Biden’s old infrastructure package. I had no idea until I read its deck. They had a big analyst meeting today. The last quarter was solid, too, and the stock’s up a quick 38% from April lows.”
10. Revolution Medicines, Inc. (NASDAQ:RVMD)
Number of Hedge Fund Holders: 71
Revolution Medicines, Inc. (NASDAQ:RVMD) is one of the stocks Jim Cramer recently offered insights on. When a caller asked for Cramer’s thoughts on the stock during the lightning round, he replied:
“Alright, this is a speculative situation… oncology play. I… lost my mom in cancer. I wish they had been working, this company existed during that period. I don’t know if they have anything at all, but I always say yes to the speculative stocks that are trying to cure cancer. If someone gets it right, wow.”
Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage oncology company developing targeted therapies for RAS-driven cancers. RAS refers to a family of genes that produce proteins controlling cell growth and division. On October 17, Raymond James increased its price target for the stock to $76 from $72 and maintained a Strong Buy rating. The firm noted that RevMed’s daraxonrasib has been accepted into the FDA Commissioner’s National Priority Review, which is expected to shorten the timeline for daraxonrasib’s market entry in second-line RAS-mutant pancreatic cancer.
