In the 1967 movie The Graduate, business titan Mr. McGuire gives Dustin Hoffman’s character what is perhaps the most famous fictional investment advice ever, whispering “plastics” in his ear.
For a recent Executive Decision segment on his Mad Money show, Jim Cramer spoke with Bob Patel, CEO of LyondellBasell Industries (LYB) - Get LyondellBasell Industries NV (LYB) Report, the chemical maker with shares up 54% over the past year. LyondellBasell also offers a 4.2% dividend yield.
Plastics are at the heart of LyondellBasell’s business and McGuire’s advice still appears sound during the recovery. Patel said the recovery from COVID is only just getting started, and while demand is already increasing here in the U.S., Europe and Asia's reopenings are still ahead.
Plus, the shortage in semiconductors has hampered multiple industries, from autos to appliances, and it may take another two years for those industries to catch up to demand.
Patel told Cramer that the pandemic showed the best and worst of the plastic industry. He said so many products, like personal protective equipment and syringes, depend on plastic, but more must be done to close the loop on plastic waste to ensure that every item can find its way back to a recycling facility.
Over on Real Money, Chris Versace tells how the hunger for more and better technology that increased during the pandemic has created strong investment opportunities.
From mobile infrastructure to mobile technology, Versace has a list of stocks he thinks are poised to profit as the economy reopens. Get more of Versace and Cramer’s investment insights and trading strategies on Real Money.
Versace writes: “As we saw during the pandemic, digital infrastructure and connectivity became essential as we looked to work and learn from home or other locations...Here's the thing with our digital lifestyle: The more data we have access to, the more we want, the more we create, and it's this virtuous cycle that drives continuously expanding demand for digital infrastructure.”