We're making small buys, as promised, after S&P 500 closed in a bear market

Published Tue, Jun 14 20229:22 AM EDTUpdated Tue, Jun 14 20229:31 AM EDT

We're buying 100 shares of Advanced Micro Devices (AMD) at roughly $87.75 each; and 25 shares of Constellation Brands (STZ) at roughly $230.03 each. Following Tuesday's trades, the portfolio will own 650 shares of AMD, increasing its weighting in the portfolio to 2.06% from 1.75%; and 305 shares of STZ, increasing its weighting in the portfolio to 2.55% from 2.34%. We are making a couple of small buys Tuesday morning as we said we would Monday night with the S & P Oscillator at minus 6.9%, a threshold that indicates the market is technically oversold . Wall Street got a bounce at the open Tuesday, the morning after the S & P 500 officially closed in bear market territory. For AMD, we are buying the second 100 of the 300 shares we sold on April 11 at around $98 per share in response to a more hawkish Federal Reserve. We last bought 100 shares AMD on April 26 at around $86 per share . Shares are down about 12% since management hosted its Analyst Day last Thursday, a move we are not completely surprised by due to the market's angst concerning growth stocks and semiconductor companies. But the drop is one that we believe creates long-term opportunity. The market may be terrible right now, but we have not forgotten how upbeat management's presentation was. Not only did management reaffirm its full-year guidance at the event — a sign that the economic slowdown has not disrupted AMD's business— their updated long-term targets suggest there is a lot more runway for growth. Analysts at Jefferies said after the event that management's 2025 framework implies $7.70 in earnings per share. Of course, these are just targets and a lot has to go right for AMD to achieve them. However, we believe this management team, led by CEO Lisa Su, is bankable with its history of gaining market share and outperforming expectations. We are also adding to our position in Constellation Brands, the beer, wine, and spirits maker that is best known for its Mexican brands Corona, Pacifico, and Modelo. As we wrote last week , recent data suggests Mexican beer imports in March and April grew double digits year over year, a sign that there has been no slowdown in Constellation's business. This makes sense to us history shows beer sales tend to be resilient during economic downturns, and that's a big reason why we continue to add to our position on weakness. (Jim Cramer's Charitable Trust is long AMD and STZ. 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.

Countries like the U.S. and U.K. are grappling with inflation that has risen to multi-year highs as the Ukraine war has caused energy prices to spike and food prices to rise.

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