We're adding to our newest stock on weakness, putting some more of our big cash position to work

Published Thu, Dec 15 202210:50 AM EST

We're buying 100 shares of Emerson Electric (EMR) at roughly $95.61 apiece. Following Thursday's trade, Jim Cramer's Charitable Trust will own 250 shares of EMR, increasing its weighting in the portfolio to about 0.8% from about 0.5% Markets are in selloff mode again Thursday as investors continue to digest Federal Reserve Chairman Jerome Powell's comments after Wednesday's conclusion of the central bank's two-day December policymaking meeting. One of the fears coming out of Powe'll news conference was that the Fed will hike interest rates to a higher so-called terminal level than what the market had expected and for longer than, too. That's creating risks that the U.S. economy will be put in a recession. Thursday morning's weaker than expected November numbers on retail sales and industrial production certainly hurt the soft-landing camp, though we remain constructive about cyclical stocks tied to infrastructure related end markets. On days like Thusrday, it's nice to have an above average cash position like we do of around 12%. Cash is a friend on big down mornings as it provides protection to the downside, but also affords us the luxury of being opportunistic as prices come down. We are taking advantage of Thursday's selloff by adding to our Emerson Electric position into weakness, one day after initiating the position . We specifically said in Wednesday's trade alert that we're starting EMR off with a smaller than usual weighting in the portfolio because the stock had had a solid run lately. It goes without saying that market volatility is always to be expected. With shares down alongside the broader indexes, we are making our next EMR purchase, and we'll continue to gradually add to our position into weakness. We'll be talking a lot more about Emerson during December's "Monthly Meeting" on Thusrday at noon ET for Club members only. (Jim Cramer's Charitable Trust is long EMR. 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.

Jim Cramer at the NYSE, June 30, 2022.

Virginia Sherwood | CNBC