If we've learned anything during this pandemic, it's that betting on the end of the world is a fool's game. It was a year ago Tuesday that the Dow Jones Industrial Average fell more than 3,000 points to its 2020 lows, and Jim Cramer marked the occasion by reminding his "Mad Money" viewers that panic is never an investment strategy.
A year ago, little was known about COVID-19. Investors feared that we were doomed to repeat the mistakes of the financial crisis, where help was too little, too late and our entire financial system almost collapsed.
But the pandemic was a health emergency, not a financial one. And unlike 2008, this time, the Federal Reserve, the Treasury and lawmakers all acted quickly, adopting a "by any means necessary" approach to getting stimulus out quickly.
Little did we know that much of that stimulus was heading back to the stock market in the form of Robinhood traders buying everything the hedge funds were selling, including travel, cruises, airlines and yes, GameStop (GME) .
But among all the news stories of March 16, 2020 were two overlooked positives, Cramer noted. First, news that Tesla (TSLA) had raised enough cash to weather the looming shutdowns, and second, news that Moderna's (MRNA) COVID vaccine candidate stopped the virus in a single patient.
Cramer said the takeaways from the past year are simple and time-tested:
- Never bet against the Fed.
- Never sell when everyone has gotten too negative.
- Never bet that the world is ending.
- And never bet against American science and innovation.
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: Dow
In his first "Executive Decision" segment, Cramer spoke with Jim Fitterling, chairman and CEO of Dow (DOW) , the materials company. At the onset of the pandemic, Dow bought back two million of its own shares as a sign of confidence in its future. Shares of Dow are up 187% over the past year.
Fitterling explained that his team knows how to execute and a year ago, they knew their shares were significantly undervalued and that buying them back would be a solid investment.
Looking ahead, Fitterling said that 25% of Dow's sales stem from housing and the housing market has remained strong throughout the pandemic. Now that we're seeing signs of a recovery in China and the U.S., the outlook is strong for all of Dow's other end markets, like autos, EVs, alternative energy and packaging.
When asked whether additional buybacks and dividend boosts could soon be in the cards, Fitterling said he has a few other priorities, like reducing capital expenditure and growing the top line, but returning capital to shareholders is always a goal.
Cramer said shares of Dow are still not expensive and they sport a terrific dividend.
Executive Decision: Lucid Motors
For his second "Executive Decision" segment, Cramer also spoke with Peter Rawlinson, CEO and CTO of Lucid Motors, which will soon be merging with Churchill Capital IV (CCIV) to enter the public market.
Rawlinson said that Lucid is the only company other than Tesla to create its batteries, motors, drivetrain and software all in-house, which allows them to build cars with incredible efficiency. That means high-performance cars with estimated ranges of over 500 miles. Lucid currently has 7,500 preorders for its Lucid Air, which will sell for $170,000.
As a result of their SPAC merger, Lucid has raised $4.5 billion, which Rawlinson explained is enough to fund the company bringing the entire Lucid Air line into production by 2023. The company's plant in Arizona will employ 2,000 people and begin production of the first Lucid Air trims in the second half of 2021.
When asked about competition, Rawlinson said he welcomes competition from all comers, including Apple (AAPL) , but he noted that EVs are a technology race, and automakers can't take a commodity approach if they expect to succeed.
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
Off the Charts
In his "Off The Charts" segment, Cramer checked in with colleague Bob Lang to dive into the new world of retail. Lang examined four retail charts that all pointed to bullish times ahead.
Lang first looked at Capri Holdings (CPRI) , formerly Michael Kors, and felt the chart had the best momentum of any retail stock he follows. He noted its strong relative strength indicator (RSI) and Chaikin Money Flow (CMF) which signaled strong institutional buying.
Lang next looked at Tapestry (TPR) , which displayed a bullish pattern of higher highs and higher lows, as well as a strong RSI, CMF and MACD momentum indicator. He felt pullbacks, like those seen in January, were buying opportunities.
Similar patterns emerged for LVMH (LVMUY) , which spent the latter half of 2020 building a base before making a bold move higher in 2021.
Finally, Lang looked at Nordstrom (JWN) , which was fighting for its life last October. However, once vaccines began distribution, the stock exploded and it has since tripled. Lang felt another 50% of upside was possible.
Executive Decision: CrowdStrike
For his final "Executive Decision" segment, Cramer checked in George Kurtz, CEO of CrowdStrike (CRWD) , the cybersecurity company with shares up 5.6% on strong earnings.
Kurtz said that customers are looking for cybersecurity solutions that are simple and scalable, which is what CrowdStrike is able to provide. The company protects over 50% of the Fortune 100 companies, but also small and mid-size businesses as well.
When asked about the types of threats companies are facing, Kurtz explained that ransomware attacks are more prominent than ever and America needs to put bad actors and nations on notice both publicly and privately that hacking will not be tolerated.
Kurtz then commented on the recent SolarWinds attacks that threatened national security. He said that the attacks used flaws in antiquated Microsoft (MSFT) technologies that "have to be fixed" or we risk similar attacks in the future.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Tuesday evening:
MP Materials MP: "This stock has had a big move up, but I still like it."
Duke Energy (DUK) : "This yields 4% and I'd be a buyer."
Hewlett Packard Enterprise (HPE) : "This one has come back, but now it's time to go."
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, MSFT.