Investing Club: What we're watching Tuesday afternoon — Ford insider buy, an oil stock opportunity

Published Tue, Mar 29 20222:46 PM EDTUpdated Tue, Mar 29 20223:25 PM EDT

What we're watching Tuesday afternoon There is a lot of talk today about an "inverted yield curve" today, and this is a conversation that's not going away any time soon. CNBC explains why investors and market watchers care so much about this data point. Our take is we don't want to completely ignore an inversion and what it suggests about the economic picture. However, we can't lose sight one simple fact: an inverted yield curve today does not mean we can't make money in the market tomorrow. Insider Buy News: Ford Executive Chairman William Clay Ford Jr. bought 267,697 shares of Ford (F) at an average price of $16.81 on March 24, according to a filing with the Securities and Exchange Commission. It is always positive to see insiders buy shares, especially from someone who already owns a substantial stake in the company. We note that Ford was last a buyer of stock in December 2021 at roughly $21. The Food and Drug Administration authorizes a fourth Pfizer (PFE) and Moderna (MRNA) Covid-19 vaccine booster for people aged 50 and up. Oil stocks remain down today but are largely off their lows of the session. As discussed in our Morning Meeting , we see the selling and we want to go the other way on that trade and opportunistically pick up shares as they come in. If we were to pick one of our three current Club holdings in the sector, we would go with Devon Energy (DVN) because of its large dividend yield (~6.75%) and big buyback that will likely get bigger due to the elevated price of the commodity. Remember what CEO Rick Moncrief explained at our Monthly Meeting a few weeks back—Devon Energy is committed to capital discipline and returning excess cash to shareholders. (Jim Cramer's Charitable Trust is long DVN, F. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Drilling rigs sit unused on a companies lot located in the Permian Basin area on March 13, 2022 in Odessa, Texas.

Joe Raedle | Getty Images News | Getty Images

What we're watching Tuesday afternoon

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