At the April Monthly Meeting of the CNBC Investing Club, members had the opportunity to ask questions directly to Jim Cramer and Director of Portfolio Analysis Jeff Marks. One member inquired about Wells Fargo, which has seen significant growth since its initial recommendation. Jeff Marks suggested trimming the position, as it is well above a 5% weighting and has had a great run. Another member asked about investing in gold, to which Jim Cramer recommended buying gold bullion from Costco’s website as the best option.
Regarding the level of cash to keep in the Investing Club, Jeff Marks explained that they adjust their cash position early in the year before distributing gains and dividends to charity. They raise cash during parabolic market moves and deploy it during oversold conditions. When asked about sectors to focus on with the upcoming presidential election, Jim Cramer pointed out that President Trump’s policies favor defense, mergers, and higher stock market valuations, which could benefit oil and gas due to his stance on climate change.
The discussion shifted to Abbott Labs, where Jim Cramer noted a pending trial for premature baby formula in July was causing uncertainty. Jeff Marks emphasized the company’s strong outlook based on previous earnings beats and raised guidance, although the trial may be keeping some investors on the sidelines. The conversation also revisited a previous trade recommendation for Chinese tech stocks, with Jim Cramer advising to continue holding due to potential government support for market upsides.
Members inquired about Eaton, a position that had seen significant gains, prompting Jeff Marks to suggest holding onto the stock despite its high valuation. The panel also discussed the current secular trends driving their investments, focusing on data centers, industrial themes, cybersecurity, and AI. When asked about Foot Locker’s potential turnaround, Marks advised waiting for further progress before considering buying back into the stock.
In terms of navigating the volatile market, Jim Cramer emphasized the importance of holding cash, maintaining a clear head, and monitoring the portfolio’s cash position. He recommended focusing on established companies like Best Buy and Abbott Labs, exercising caution in a challenging market environment. Subscribers to the CNBC Investing Club receive trade alerts before Jim makes a trade, with a waiting period before executing transactions. The information provided by the Investing Club is subject to terms and conditions and does not create any fiduciary obligation or guarantee specific outcomes.
