Jim Cramer says if you own good stocks, like Apple, then holding steady is the best course of action. But you could hedge your bets.
People hate hearing “stay the course” when the selling gets bad, but Jim Cramer told his Mad Money viewers Thursday that if they own good stocks, doing nothing really is the best course of action.
That’s because if you own stocks like Apple (AAPL) – Get Apple Inc. Report, you’re doing just fine no matter what the Federal Reserve does with interest rates. Apple just delivered a 21-cents-a-share earnings beat on revenues that topped $123.9 billion. Not only that, Apple said their supply chain woes actually improved as the quarter progressed.
All stocks are not Apple however, which is why Cramer’s favorite market metric, the S&P short-range oscillator remains bearish and why decliners have outpaced the winners for the past 10 consecutive days.
If you’re betting on “conceptual” stocks that have no earnings, then you’re betting that all of our supply chain, transportation and labor problems can be fixed quickly. If that happens, prices will decline and the Fed won’t need to intervene for long.
This is a risky proposition, but if you’re committed to this world view, then there’s a new ETF made just for you. The Tuttle Capital Short Innovation ETF SARK has the single vision of shorting everything that Cathie Wood’s ARK Innovation ETF (ARKK) – Get ARK Innovation ETF Report goes long.
Cramer said Tuttle’s Short fund is the perfect way to hedge your bets until our economy can find its post-Covid footing.
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