The inevitability of the coronavirus outbreak is finally starting to sink in, Jim Cramer told his Mad Money viewers Tuesday, after a wild day on Wall Street that saw a huge swing in the major averages. Even the Federal Reserve was powerless to stop the panic, Cramer said, especially since their actions did more harm than good.
Cramer is a huge fan of low interest rates, but he told viewers he was against today's 50-basis-point cut because it does nothing to help the economy today and it sent the wrong message to investors. An emergency rate cut is a sign of panic, from an institution that's supposed to be the antithesis of panic. Investors need confidence and Tuesday's move spooked the bond market, which in turn sent stocks tumbling.
But there's always a bull market somewhere, Cramer said, and the time to buy is when everyone else is selling.
He suggested buying gold aggressively and picking up high-yielding dividend stocks, medical device makers like Medtronic (MDT) - Get Medtronic Plc (MDT) Report and anything related to our stay-at-home economy, like Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report and Zoom Video (ZM) - Get Zoom Video Communications (ZM) Report.
Investors must avoid everything related to travel, leisure, restaurants and autos, he said, as these sectors will remain toxic for awhile to come. If you still own stocks in these groups, Cramer said it's still not too late to sell.
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Executive Decision: Chevron
In his "Executive Decision" segment, Cramer sat down with Mike Wirth, chairman and CEO of Chevron (CVX) - Get Chevron Corporation Report, to talk about the outlook for his company and the fossil fuel industry.
Wirth said investors can always count on Chevron to do the right thing. The company welcomes the coming energy transition and are built for the future.
Chevron has the strongest balance sheet in the industry and Wirth noted that the company can fund its capital requirements as well as invest in research and development, maintain its dividend and buy back stock. Chevron is resetting its cost structure, he said, and more improvements in its cash flow are coming.
Turning to the environment, Wirth said Chevron cares about more than just climate change. It's concerned with all aspects of the environment including air, water, and ground pollution as well as sustainability. Chevron has invested over $1 billion in carbon capture and innovation remains part of the ethos of the company.
When asked about the outlook for oil prices, Wirth was hopeful that OPEC nations will continue to cut production to help stabilize prices.
Cramer said investors who want to invest in oil should invest in the best, which is Chevron.
Executive Decision: Livongo Health
In his second "Executive Decision" segment, Cramer also sat down with Glen Tullman, founder and executive chairman of Livongo Health (LVGO) - Get Livongo Health, Inc. Report, which reported a strong quarter Monday, only to fall 9% in Tuesday's broad selloff.
Tullman explained that Livongo is a digital health solution for 147 million people living with chronic conditions. The company collects data and information from their customers, and uses it to provide insights to help keep them healthy. Livongo is a perfect companion for those living with diabetes, as they help spot trends that can make a difference.
Livongo is beloved by customers, Tullman said. The company has a 94% retention rate and the company ultimately saves the healthcare system money by providing better outcomes.
Tullman added that Livongo could become profitable, but given the size of their opportunity, they continue to hire and invest in their business.
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 the "Off The Charts" segment, Cramer checked in with colleague Carolyn Boroden over the direction of the markets amid the current volatility.
Boroden used a daily chart of the S&P 500 to note that when the 5-day exponential moving average fell below the 13-day exponential moving average, the bearish crossover did signal the time to sell, as it often does. Unfortunately, this pair of averages does not appear to be nearing a bullish crossover -- which would be the time to buy -- anytime soon.
Boroden also looked at the stock of Apple (AAPL) - Get Apple Inc. (AAPL) Report, noting this stock's floor of support at $256 a share. Her Fibonacci timing cycles correctly predicted Apple's recent move higher, but only if the stock clears $312 share is it likely to reach her target of $347. If the stock fails to beat the $312 ceiling, that would be a bearish sign.
In his "No-Huddle Offense" segment, Cramer said if he had to choose between an interest rate cut and something that could actually help with the coronavirus, he'd choose the latter.
Cramer said lower interest rates do nothing to help with a public health crisis. What could, however, would be a $100 million prize for any company that helps stop the virus. Nothing helps incentivize companies like a big prize, he said.
What else could could help our economy? Cramer advocated offering small business loans to help business owners survive the coming disruptions. Big companies can manage a momentary drop in business, he said, but small businesses will really feel the pain.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Tuesday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL.