Enough talk about the Federal Reserve and how it needs to taper its policies, Jim Cramer told his Mad Money viewers Monday. Focusing on the Fed is lazy thinking, he said, and there are far more important things to focus on.
Among the things Cramer's focused on is the state of the consumer and how stimulus checks are affecting spending. He's also watching the unfolding events in Afghanistan and how they might affect relations with our allies, like Taiwan.
Over on Real Money, Jim Cramer writes: "We are not economists. We don't tend to be. We are educators trying to teach people what to care about and what they shouldn't care about when building a portfolio." Read more of Cramer's advice for people who keep trading in and out, afraid to miss the next move.
The Delta variant is also on Cramer's radar, as restrictions on indoor activities will have continued impacts on restaurants and travel, but will be good for Regeneron (REGN) - Get Regeneron Pharmaceuticals, Inc. Report and Abbott Labs (ABT) - Get Abbott Laboratories Report, makers of COVID treatments and testing.
Rounding out Cramer's list of things to focus on was lower interest rates, which has prolonged the booming housing market longer than expected. He's also keeping a close eye on cheap stocks with low price-earnings multiples and those with high dividend yields. He said viewers should be buying up these last two groups into any market weakness.
Cramer and the AAP team are looking at everything from earnings and politics 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: AppLovin
In his first "Executive Decision" segment, Cramer spoke with Adam Foroughi, co-founder and CEO of AppLovin (APP) - Get Applovin Corp. Report, the marketing and monetization platform for application developers that just reported another strong quarter which included 123% revenue growth.
Foroughi explained that AppLovin first built the tools for app developers to monetize their apps. Next, they built their own game business to utilize their tools and harness first-party data to make those tools even better. Now, he said, AppLovin has the tools and data that acts as fuel for advertisers to have success like no other platform. All of their businesses are truly synergistic. That's how the company's software platform was able to grow by 250% last year.
AppLovin also created their own machine learning platform, called AXON, which expertly matches consumers with apps and ads they will love interacting with.
Foroughi also commented on the share lockup expiration on Aug. 31. He said AppLovin remains a closely held company and they just completed an expiration last week that resulted in very little selling pressure.
Get more trading strategies and investing insights from Cramer and the other contributors on Real Money.
Off the Charts
In the "Off The Charts" segment, Cramer checked in with colleague Bob Lang, to see which companies have the most to gain from the $1 trillion infrastructure spending bill that is making its way through Congress. Cramer said the bill is a big deal, as it represents over a decade's worth of spending on roads, bridges and other long-overdue projects.
Among Lang's favorites were Martin Marietta Materials (MLM) - Get Martin Marietta Materials, Inc. (MLM) Report, whose daily chart showed a series of higher highs and higher lows including a bullish W-pattern. The Chaikin Money Flow (CMF) and Relative Strength Indicator (RSI) both signaled the stock had more room to run.
Lang also liked Union Pacific (UNP) - Get Union Pacific Corporation Report, which will benefit from rail and port upgrades across the country. He noted that shares have been trading in a box for almost six months, making a breakout to the upside very likely. He also noted this stock's strong MACD momentum indicator.
Finally, Lang chose American Tower (AMT) - Get American Tower Corporation Report, a less-known infrastructure stock, but one that will benefit from an increase in mobile broadband access. American Tower has been bouncing steadily off every dip since March.
Off the Tape: Suntory
In his "Off The Tape" segment, Cramer sat down with Takeshi Niinami, president and CEO of the privately-held Suntory, the alcoholic beverage maker that includes brands such as Jim Beam, Maker's Mark and Pinnacle Vodka.
Niinami said that while on-premise sales of liquor at bars and restaurants is picking up, there is still a lot of uncertainty, both in the U.S. and abroad, as to the long-term affects the Delta variant will have on our economic reopening.
When asked if that means more people will enjoy Suntory's products at home, Niinami noted that in countries like Japan, premium sales have been in decline, but in the rest of the world, like Europe and North America, sales of premium products are holding steady thanks to delivery and private consumption.
Niinami also spoke to Suntory's environmental initiatives. He said his company already uses renewable power in both the U.S. and Europe and will continue throughout the globe. The company has also committed to reducing water usage and is a leader in researching ways to make plastics more environmentally friendly.
What to Pay for a Stock
In his "No Huddle Offense" segment, Cramer urged viewers not to sell a stock just because it has a high price-earning multiple. Instead, you should be worried if your stock's price-earnings multiple is too low.
A stock's valuation can be deceiving, Cramer continued. While shares of Nvidia (NVDA) - Get NVIDIA Corporation Report trade for 50 times earnings and steelmaker Nucor trades for just six times earnings, Nucor is the expensive one. Nvidia is a solid performer that's always had a high multiple. But Nucor shares have jumped 40% in just the past month as investors anticipated an infrastructure bill out of Washington.
Then there are the banks. All of the major banks have very low multiples, but those multiples can be tricky. The banks are limited by both low interest rates and increasing COVID cases, which could mean shares head lower.
So the next time you're considering John Deere versus Caterpillar (CAT) - Get Caterpillar Inc. Report, Cramer said to look beyond just which one is cheaper. Look at what the company does and what its future will be.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Monday evening:
Mind Medicine (MNMD) : "I'm a believer that this is a great speculative stock, but remember, stocks can go to zero."
Butterfly Network (BFLY) : "It's just another company that came public at the wrong time. You need to wait for everyone to sell."
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At the time of publication, Cramer's Action Alerts PLUS had a position in ABT, NVDA.