Mad Money

Cramer Remix: Ignoring Washington negatives could benefit your portfolio

Key Points
  • "Mad Money" host Jim Cramer reminds investors that when they focus on individual companies, good things can happen.
  • Cramer also sits down with the CEO of Magellan Midstream Partners.
  • In the lightning round, Cramer explains why he wouldn't sell the stock of DowDuPont.
Cramer Remix: Ignoring Washington negatives could benefit your portfolio

For CNBC's Jim Cramer, there's always a better time to get out of stocks than during a major marketwide sell-off.

"We got too negative [on] Friday," the "Mad Money" host said on Monday as stocks pared their gains. "If you wanted to sell, your chance came this morning during the rally, not Friday during the freak-out."

"Look, this market is crazy," he continued, "but this morning we saw how a series of unexpected positives can send stocks soaring, and that's worth keeping in mind now that the Mueller investigation is making things even more chaotic."

Cramer pointed to Sunday night, when investors and market-watchers alike anxiously awaited news about Chinese retaliation to Trump's $100 billion tariff proposal.

But instead of putting tariffs on U.S. goods, China banned exports to North Korea of materials tied to weaponization, pressuring the country to disarm its military.

"Rather than the escalation so many feared, China offered President Trump an olive branch," Cramer said. "Here's the bottom line: President Trump's trade dispute with China is not the be-all and end-all of this market. I think there's simply been a vacuum of news about actual earnings and takeovers, so the endless negatives from Washington were allowed to take center stage.

"Now that earnings season's almost upon us, we can start to focus on individual companies again and their worth, and boy, I can't wait," Cramer continued. "We got too negative Friday, and if you really wanted out, the market always gives you a better time to sell."

The market's 15 tariff-resistant sectors

President Donald Trump and China's President Xi Jinping (not shown) make a joint statement at the Great Hall of the People on November 9, 2017 in Beijing, China.
Getty Images

Even as stocks recovered on Monday after a tariff-related sell-off, Cramer knew investors would still be hesitant about adding to their portfolios amid all the uncertainty with China.

But rather than accepting the idea that every stock in the market is doomed, Cramer looked for stock groups that have managed to weather the Trump administration's trade policy turmoil.

"I've got 15 sectors that have been staggeringly unaffected by these tensions," he said. "In a market that increasingly trades on President Trump's trade policy, these 15 groups have become consistent winners. No one's talking about them. Some of them may surprise you."

Go for the golf?

Rob Tringali | SportsChrome | Getty Images

In an increasingly volatile market, what investors truly need to keep their portfolios afloat are sectors with real staying power, Cramer said on Monday.

"You know what has staying power here more than almost any group that I know? Golf," the "Mad Money" host said. "I know that golf isn't exactly the pinnacle of excitement. It's not sexy. Some argue it shouldn't even be a sport. The Masters had some massive ratings, though, especially when Tiger Woods was playing earlier in the tournament for the first time in years."

Cramer found the aftermath of the Masters a perfect time to reiterate his call about a key market theme: the comeback in the game of golf and the related strength in golf-related stocks.

Magellan Midstream Partners CEO discusses sector weakness

With a number of the oil pipeline stocks under pressure, Magellan Midstream Partners Chairman and CEO Mike Mears pushed back on the weakness in an interview with Cramer on Monday.

Mike Mears, Magellan Midstream CEO
Scott Mlyn | CNBC

"We think we've been dragged down with the group and we're kind of the baby thrown out with the bathwater," Mears told the "Mad Money" host, arguing that his company's "best-in-class" balance sheet, governance structure and growth prospects outpace its struggling competition.

And even with a recent Federal Energy Regulatory Commission ruling that alters the way master limited partnerships like Magellan are allowed to account for income taxes, Mears was confident his business would hold steady.

The CEO added that the worst thing his company could do now was try to force outperformance by building more pipelines.

"It's a hyper-competitive market in the Permian right now," Mears said. "The worst thing you can do in this market is overbuild. I mean, the midstream space has a history of overbuilding. We have two pipes out of the Permian today. The last thing you want to do is build one more than is actually needed. It hurts all of them."

Cramer on Kudlow: The Trump ceiling and the Trump floor

Finally, Cramer reflected on his morning interview with Trump's top economic advisor and former CNBC host Larry Kudlow, who offered his perspective on the president's proposal to slap $100 billion in additional tariffs on Chinese products.

"There's a Trump ceiling and a Trump floor," Cramer said. "The ceiling? Trump's angry war of words with the Chinese; he can't seem to stop himself from saying China's just a plain bad actor and better change its ways or else, whatever 'else' might be."

He continued: "Then, on the other hand, there's the Trump floor. That floor amounts to Larry Kudlow coming on air and reminding us that nothing's a done deal and that there are still ongoing negotiations, and more important, he's confident everything will work out in our favor."

In recent weeks, Kudlow's clarifications even helped stocks bottom and start trading higher, Cramer noted, asking investors to retain some of Kudlow's optimism moving forward.

"It's right to respect the Trump ceiling, just don't forget about the Trump floor or you'll miss out on some nice moves like we had this morning," the "Mad Money" host said. "You can be skeptical without allowing despair to become the watchword for your portfolio."

Lightning round: Too down on DWDP?

In Cramer's lightning round, he zipped through his take on some callers' favorite stocks:

DowDuPont: "This stock is down way too much. I'm telling people in my charitable trust at ActionAlerts … just because they have one crop protection problem, I'm not cutting and running, not with [CEO] Ed Breen at the helm. He's too good. He's created too much value."

GenMark Diagnostics: "Look, it's a good spec, it's just that it's not my cup of tea. There's nothing the matter with speculating, though, as long as you remember: don't put a lot of money that you may need into that stock."

Disclosure: Cramer's charitable trust owns shares of DowDuPont.

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