Stop Trading!: Proof of Recession?
Not even the so-called safety stocks are working right now, Cramer said during Friday’s Stop Trading!. It’s a classic sign of a true bear market.
“This is a bear market that was concentrated in financials and homebuilders, now spilled over to industrials,” he said. “But really has been mauling safety, too, which is really a new trend.”
Usually, stocks like Coca-Cola and Procter & Gamble are the go-to names when recession threatens, but both are trading down today. Still, Cramer recommended investors buy some PG and KO anyway. Coke especially, he said, which has room to grow over an 18-month period.
If you need a proof we’re in a recession, just look at the drug stocks as a “true sign,” Cramer said. This is another go-to sector during trouble times in the market. Even the perennially bad Pfizer is up with an hour left in the trading day.
What is working right now? “Oil and gas and what we send to China,” Cramer said. Gold, too. Agnico-Eagle Mines is up 15 straight points, so he recommended taking profits.
Lastly, Cramer said he agreed with JPMorgan’s downgrade of International Gaming Technology.
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