This rally is for real, Jim Cramer told his Mad Money viewers Thursday, but still, it's time to take some profits and raise some extra cash. That's because when everyone is already bullish, there's no one left to buy. The markets are becoming complacent, Cramer told viewers, and that's always a warning sign.
It wasn't too long ago the bears were warning us that an inverted yield curve was signaling a recession. Those warnings only led to more bond buying and even longer yields. After the Federal Reserve stepped in to lower interest rates, those fears fell silent. Investors had similar misguided assumptions regarding trade, continually expecting a quick resolution when, so far, we have seen little to no real progress from the Chinese on trade talks.
Then there's retail. The markets have become complacent here, too. Ralph Lauren (RL - Get Report) shot up 14.6% on strong earnings, taking much of the retail sector along for the ride. But, Cramer said, every retailer can't be doing well at the same time, that's simply unrealistic.
A similar pattern can be seen in the semiconductors. Investors excited about 5G wireless have been buying all of the semiconductor stocks, even those that have nothing to do with 5G wireless.
Cramer said he doesn't expect a big selloff, but when everything seems to be going perfectly, that's the time to start raising some cash for the inevitable correction.
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Optimism for Trade Talks?
What should investors make of today's news that the Chinese are getting tough on Fentanyl smugglers? There's plenty of disinformation being generated on both sides of the trade war, Cramer said, but the truth is, this may be a serious step forward for the Chinese.
While it's true that the Chinese agreed to cracking down on Fentanyl even before the trade war began, and have since done nothing, Cramer said today's actions were significant and a sign of good faith for the trade war and beyond.
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Shares of Qorvo rocketed 20% higher last week after the company delivered a 22-cents-a-share earnings beat on a $1.30 a share basis. The company said sales to Apple (AAPL - Get Report) , which account for 30% of its business, were strong on the heels of the iPhone 11, and the 5G wireless rollout is moving ahead faster than expected.
Cramer said with a strong buyback and shares still trading at 15.5 times earnings, Qorvo is a buy, even after this week's big run.
Qorvo isn't the only 5G winner however, Cramer also recommended Qualcomm (QCOM - Get Report) , which rose 6.3% Thursday and trades at 15 times earnings. He was also bullish on Skyworks Solutions (SWKS - Get Report) , which reports next week, and trades at 16 times earnings.
Executive Decision: Brixmor Property
For his "Executive Decision" segment, Cramer spoke with Jim Taylor, president and CEO of Brixmor Property Group (BRX - Get Report) , the retail REIT with a focus on outdoor retail centers and a 5.3% dividend yield.
Taylor said business is good at Brixmor and it currently enjoys a 85% occupancy rate that's trending toward 90%.
When asked about the disruption in retail, Taylor explained that change is good in their business because it allows the company to replace ailing tenants with more relevant ones. If a tenant asks for a discount, they don't need to negotiate, he said, they're happy to take the space back and repurpose it to better meet the needs of the community.
Overall, Taylor said their retail tenants are doing a great job adapting to the needs of their customers. Trends like buying online and picking up in stores is gaining a lot of traction, he said, and they're reserving more and more parking spots for pickup all the time.
Cramer said there aren't many ways to get a yield more than 5%, but Brixmor is one of them.
Executive Decision: CyrusOne
In his second "Executive Decision" segment, Cramer sat down with Gary Wojtaszek, president and CEO of CyrusOne (CONE - Get Report) , the data center REIT which has seen its shares fall from highs near $80 a share to just $66 a share Thursday as the market rotated out of growth stocks.
Wojtaszek said despite some reports to the contrary, the data center business is alive and well. He said while some companies are scaling back on their networking spend, others areas, like CPUs and storage continue to grow.
Wojtaszek added that they're seeing growth in several areas, including the financial sector, and in enterprise overall, where hybrid cloud deployments are becoming more popular. CyrusOne is also seeing strong growth overseas, with sales up 70% in Europe.
In the Lightning Round, Cramer was bullish on Home Depot (HD - Get Report) , Lowe's (LOW - Get Report) , VMware (VMW - Get Report) , National Grid (NGG) , Advanced Micro Devices (AMD - Get Report) and Apple Hospitality REIT (APLE - Get Report) .
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