In a special show for the 16th anniversary of Mad Money, Jim Cramer told his viewers that they should celebrate by spending their stimulus checks wisely.
First, Cramer encouraged viewers to use their stimulus to pay off high-interest credit card debt. Second, investors must make sure they have health insurance. Nothing leads to bankruptcy faster than unpaid medical bills. Third, Cramer recommended your first $10,000 be placed in an S&P 500 index fund. Then, and only then, should investors consider investing in individual stocks for their "Mad Money" portfolios.
What stocks you invest in depends on your age and risk tolerance, Cramer said. In every sector there are high-risk and low-risk investments.
If you're considering a vaccine stock, high-risk investors can consider Moderna (MRNA) - Get Report while low-risk investors should opt for Johnson & Johnson (JNJ) - Get Report. If you're considering payment processors, Square (SQ) - Get Report and PayPal (PYPL) - Get Report are high risk, while Visa (V) - Get Report and Mastercard (MA) - Get Report are lower risk.
The same applies to technology stocks, where investors can choose Snowflake (SNOW) - Get Report versus Microsoft (MSFT) - Get Report, or auto stocks -- Tesla (TSLA) - Get Report pairing with Ford (F) - Get Report or General Motors (GM) - Get Report.
As for those high-dollar stocks, Cramer said investors should take advantage of fractional shares and buy whatever amounts of Amazon (AMZN) - Get Report or Alphabet (GOOGL) - Get Report they can afford.
Successful investing isn't about finding the next GameStop (GME) - Get Report, Cramer concluded, it's about covering the basics first, then determining which stocks best fit the amount of risk you're comfortable with.
Executive Decision: Advanced Micro Devices
In his first "Executive Decision" segment, Cramer checked in with Dr. Lisa Su, president and CEO of Advanced Micro Devices (AMD) - Get Report, which closed the day up 1.7% as the company unveiled its latest generation of high-performance processors.
Su said today is a very exciting day for AMD, as their third generation chips have double the performance of their closest rival. She said computing has moved to the data center and everyone from researchers to corporations want the best performance they can get.
Monday's announcement is not an overnight success, however. Su noted that AMD has been working on their high-performance roadmap for five years. In addition to exceptional engineering, she credited AMD's partners with working tirelessly to help them solve the biggest computing challenges.
Finally, when asked whether the semiconductor shortage is good or bad for AMD, Su explained that they're seeing enormous demand for all of their processors, which is very good for AMD.
On Wall Street today, the Dow Jones Industrial Average and the S&P 500 closed at records and Treasury yields remained just below one-year highs as investors assessed inflation risks following the passage of the $1.9 trillion relief package for the U.S. economy.
The Dow finished up 174 points, or 0.53%, to 32,953. The blue-chip index finished higher for the seventh straight session and touched an intraday record.
Cramer and the AAP team are looking at everything from earnings and the pandemic to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Executive Decision: Celsius Holdings
For his final "Executive Decision" segment, Cramer checked in John Fieldly, CEO of Celsius Holdings (CELH) - Get Report, the energy drink maker that saw shares plunge 25% last week after it reported mixed results. Shares of Celsius are up 810% over the past year.
Fieldly said that while they are seeing some shortages in aluminum cans, most Celsius flavors remain in stock and will be readily available for the summer season. The company continues to expand distribution, including more direct-to-store distribution which ensures product not only arrives at the store, but is also stocked on the shelves.
Celsius is now the No. 3 energy drink brand behind Monster and Red Bull and Fieldly noted that the energy drink market is growing, thanks to the focus on promoting active, healthy lifestyles. He said Celsius is not just a North American opportunity, it's a global opportunity.
Outlook for SPACs and EVs
The honeymoon may be over for the EV stocks and SPACs, but Cramer said there are still two ways to make money in this sector.
Make no mistake, Cramer said, he's still a big fan of Tesla, Fisker (FSR) - Get Report and the SPAC that will soon become Lucid Motors (CCIV) - Get Report. But now is not the best time to buy their stocks. Likewise with the flood of EV SPACs, like XL Fleet (XL) - Get Report and Lordstown Motors (RIDE) - Get Report, both of which have been hit hard in recent days.
Cramer said those looking for a less risky way to play EVs should consider Ford and General Motors. Yes, you read that right, Ford and General Motors.
Ford is poised for a great 2021. That's because as the economy grows, small businesses will need new Ford F-150 pickups, and soon, some of those pickups will be electric. The Electric F-150 comes on the heels of the Mustang Mach-E, also electric. As for GM, the company has pledged 30 new EVs, starting with the new recently announced Chevy Bolt EV and EUV.
Trading at just nine times earnings, Cramer said both Ford and General Motors represent great value.
And Here's to 16 Great Years
In his "No Huddle Offense" segment, Cramer capped off 16 years of Mad Money by reminding viewers that his mission has always been to help people make the most money with the least amount of risk possible. As younger investors come into the stock market for the first time, this mission has never been more relevant or important.
Mad Money focuses on longer-term investing, sticking with great companies with terrific management that can work for investors over time. The show will always include humor and entertainment, because making investing fun keeps people engaged.
Cramer's had a lot of winners over the years, like Apple (AAPL) - Get Report, Tesla and creating the acronym FAANG. But it's also had its share of losers as well, and Cramer said it's important to own up to those mistakes.
Monday, we learned that Eli Lilly's (LLY) - Get Report Alzheimer's drug isn't as good as expected -- news that sent shares down 9% by the close. Cramer said he got too excited about Lilly, but that doesn't mean he's giving up on finding the next opportunity.
In a market with too many IPOs and SPACs and lots of froth, those opportunities are often hard to find, but as Cramer concludes every show, "there's always a bull market somewhere."
Here's what Cramer had to say about the stocks that callers offered up during a special Mad Money Lightning Round that featured America's essential workers:
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At the time of publication, Cramer's Action Alerts PLUS had position in MA, AMZN, GOOGL, MSFT, AMD.