You only need to get rich once, but if you want to stay that way, you better keep owning stocks, Jim Cramer told his Mad Money viewers Thursday. That's because investors are looking at equities in a new light and stocks are becoming a lot more valuable than they used to be.
Cramer explained that in the old days, you got rich by buying stocks, but you stayed rich by moving your money into bonds. Bonds don't go down, after all, and they provided regular, reliable dividends. But after the financial crisis a decade ago and an out of control pandemic today, interest rates on bonds continue to be at historic lows and could be that way for the foreseeable future.
Cramer said that's why, despite the pandemic and election confusion, investors are still clamoring for stocks. There's simply nowhere else to put your money. Corporate CEOs care about their shareholders and they are the ones offering regular, reliable dividends, not the government. Plus, stocks have the added benefit of having growth to boot.
If you want to stay rich in this market, you have to own stocks. Stocks don't need government help, Cramer concluded, but bonds do.
Changing Gears on GM
After years of panning General Motors (GM) - Get Report, Cramer said he's had a change of heart. He said GM is making a ton of money, is making huge investments in alternative fuels and is seeing strong sales in China.
GM will soon reveal its new lineup of electric vehicles and with all of the interest in its new Hummer EV, Cramer said this event will be a catalyst that drives the stock higher. He said investors need to buy ahead of that event.
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Executive Decision: Papa John's
In his first "Executive Decision" segment, Cramer spoke with Rob Lynch, president and CEO of Papa John's (PZZA) - Get Report, the pizza delivery chain that just posted a solid top and bottom line beat this quarter.
Lynch reiterated that Papa John's had a terrific quarter and has added over eight million new customers so far this year. The company's strategy continues to revolve around offering its customers better food made with better ingredients.
Papa John's is also innovating new products and promotions, like the Shaq-a-roni pizza, which was launched in conjunction with basketball legend Shaquille O'Neil and has raised over $3 million for charity.
Lynch said Papa John's continues to invest in technology, as customers prefer ordering online and digital ordering only increases productivity.
Finally, Lynch noted that franchisees see the opportunities for growth and are investing in their restaurants and in the Papa John's brand.
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Get Ready for the Tests
With COVID-19 cases spiking across America and Joe Biden gaining ground in ballot counting, it's time to invest in the testing stocks, Cramer told viewers.
ThermoFisher Scientific (TMO) - Get Report remained Cramer's favorite in the group after speaking with the company's CEO earlier this week. The company is producing 20 million COVID-19 tests per week and shares are up 59% year-to-date.
Also making Cramer's list were names like Abbott Laboratories (ABT) - Get Report, which made one million tests this quarter, Hologic (HOLX) - Get Report, which is manufacturing two million tests per week, and PerkinElmer (PKI) - Get Report.
Among the smaller testing providers, Cramer said Quidel (QDEL) - Get Report is a wild trader, but could be considered once the stock clams down. He also told viewers to consider Fluidigm (FLDM) - Get Report, makers of a less accurate, but still needed, saliva test.
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At the time of publication, Cramer's Action Alerts PLUS had a position in ABT.