It's unusual to have low interest rates, government stimulus and a Federal Reserve committed to creating jobs, Jim Cramer told his Mad Money viewers Monday. But that's what we have, and it's creating a utopia for stocks. Last Friday's jobs report was perfect in the eyes of investors. That, combined with record vaccinations on Saturday is what set the markets on fire today.
What's rallying the most? Cramer said investors are flocking to FAANG, along with Microsoft (MSFT) - Get Microsoft Corporation Report, because these high-fliers have lagged the overall markets as of late. Facebook (FB) - Get Meta Platforms Inc. Class A Report is cheap, while Amazon (AMZN) - Get Amazon.com, Inc. Report is still down for the year.
Then there are the semiconductors, where global shortages continue to grow as demand outstrips supply. As we heard from Micron Technology (MU) - Get Micron Technology, Inc. Report last week, this shortage will be with us for a while.
Despite the shortage, the automakers continue to rally, with strong earnings from Ford (F) - Get Ford Motor Company Report and General Motors (GM) - Get General Motors Company Report, both of which still trade between 11 and 12 times earnings.
Finally, Cramer called out the travel stocks, where investors snapped up shares of airlines, cruise lines, hotels and destinations as everyone knows people will begin travel as soon as they're vaccinated.
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Executive Decision: MarketAxess
In his first "Executive Decision" segment, Cramer spoke with Rick McVey, chairman and CEO of MarketAxess (MKTX) - Get MarketAxess Holdings Inc. Report, the fixed-income trading platform that just saw record trading volumes.
Shares of MarketAxess are up 34% over the past year.
McVey said that while everyone thought that last March, as the pandemic began, was the high-water mark for digital bond trading, this March surpassed even those levels and set new records for his company. He said there is still plenty of government and corporate bond trading happening all over the globe.
Investors are also clamoring for more green bonds, which is why MarketAxess is making it easier to identify and add these products into your portfolios. He said green bonds will continue to be a big story over the next five years.
When asked about access to the lucrative Chinese trading market, McVey said he remains confident that approval will eventually happen for MarketAxess.
While gross margins continue to expand, McVey noted that he remains focused on investing into their business and growing their market share to maximize returns for MarketAxess shareholders.
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Executive Decision: Norwegian Cruise Line Holdings
For his second "Executive Decision" segment, Cramer also spoke with Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report, the cruise line operator that finds itself locked in a battle with the CDC over the timing and protocols needed to resume sailing. Shares of Norwegian rose 7.1% Monday after the company offered up its latest round of proposals for safe operations.
Del Rio said he was "deeply disappointed" by the latest guidance from the CDC. "It's time to start cruising again," he said. The cruise lines have been forbidden from sailing for 17 months and there is still seemingly no end in sight.
Cruise lines in Europe and Asia have been sailing for months with only 50 reported cases of COVID, Del Rio added, and all of those cases were handled beautifully. Norwegian has asked the CDC to allow them to begin sailing beginning on July 4, three months from now, with only vaccinated passengers.
Del Rio said he's not daring the CDC to act, he simply wants them to come to the table for discussions. No other industry is being as heavily regulated, despite the cruise lines upgrading air filtration systems, adding quarantine stations and making health and safety their No. 1 priority.
Del Rio declared that he is 100% sure they can create a safe environment for their passengers. "We just want to be treated like every other sector of the travel industry," he concluded.
Off the Tape: Director Search
In his "Off The Tape" segment, Cramer spoke with Ken Taylor, founder and CEO of the privately held Director Search, a company looking to shake up how companies find new board members.
Taylor said the current system for finding directors is controlled by just five companies and often relies on "who you know" instead of who's the best candidate for the job. That's why the overwhelming majority of board members are white men over the age of 65.
Director Search is disrupting this process, turning the process from an episodic affair to an ongoing subscription service. The company's platform includes information on every current and would-be director and allows companies to build lists of qualified and diverse candidates before they need them.
Taylor said nearly one in five directors in the U.S. are over the age of 70, which means there's a great opportunity to begin making a difference in the coming years as older board members retire.
More to Investing Than Memes
In his "No Huddle Offense" segment, Cramer reminded younger investors that there's more to investing than just the meme stocks and technology. Diversification is an important lesson that every investor needs to learn and for many of the Robinhood investors, the time to learn it is now.
The big money managers have moved on to the reopening stocks, Cramer explained, and that means stocks like GameStop (GME) - Get GameStop Corp. Class A Report aren't going to revisit their former highs. Stocks like Tesla (TSLA) - Get Tesla Inc Report will remain great long-term stories, Cramer said, but there needs to be some boring stocks in your portfolio as well.
Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Monday evening:
Taiwan Semiconductor (TSM) - Get Taiwan Semiconductor Manufacturing Co. Ltd. Report: "You're in good shape there. I would buy it at these levels."
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At the time of publication, Cramer's Action Alerts PLUS had a position MSFT, AMZN, FB.