Cramer: Profit Taking Not Over
Bad news from the Federal Reserve and worse-than-expected jobless claims have made for a bad day in the market, Cramer said during Stop Trading!. The Dow was down about 140 points just before the closing bell.
The Federal Reserve on Thursday cut its outlook for the economy and predicted greater unemployment. Initial jobless claims for last week fell to 631,000, but that was still higher than the 630,000 expected. And continuing jobless claims reached record levels. Stocks fell as a result, Cramer said, as “people are very worried suddenly about a macro US call.”
“I don’t think the profit taking’s over,” he said.
With Erin Burnett live in Nigeria as part of her “Dollars & Danger” special, Cramer highlighted a few related trades.
Sappi , a South African glossy papermaker, pays out a 5% dividend yield. While there is some concern about Sappi’s exposure to the
struggling magazine industry, Cramer said, this stock is still a way to play Africa “to some degree.”
Cramer also endorsed the First Bank of Nigeria, though the only way he could find to play it was through the Market Vectors Africa exchange-traded fund. He did caution investors about these ETFs, though, because they are overweighted with South African companies.
Investors who want an African mining play should consider Randgold Resources, Cramer said, even more so than AngloGold Ashanti, another mining favorite. Freeport-McMoRan, with its copper operations, is a bit more diversified than these other two, but the stock has already had too big of a run.
“I can’t tell people to come into it here,” Cramer said.
Cramer's charitable trust owns Freeport-McMoRan.
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