Jim Cramer on 2020 Crash, AMD, Tesla, Fed, Stocks Tuesday

Jim Cramer and Katherine Ross talk the 2020 market crash, stimulus checks, AMD, the Fed, Tesla, Chewy and more.
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It's Tuesday, March 16.

Recap Tuesday's episode of TheStreet Live with Jim Cramer and Katherine Ross in the video below and be sure to catch TheStreet Live every weekday at 10:30 a.m. ET:

The Anniversary of the March 16, 2020 Crash 

It's been a year since the Dow plummeted 2,997 points, leading to the worst point drop on record. 

It had been the Dow's third consecutive move of 9 percent or more in either direction, and this was tracked by Dow Jones Market Data Group.

S&P and Nasdaq had also lost around 12% and it was one of the starts of the limit up and down rules that investors then started to experience--with the market being halted in 15 minute increments.

"What we have to learn that if the Fed is smart, if the treasury secretary is willing to break bread with both parties, if Congress acts immediately....that allowed real companies that were about to go under stay alive," Cramer said. 

Tesla and the Magical World of Investing...

Jim Cramer devoted his Real Money column on Tuesday, March 16 to Tesla  (TSLA) - Get Report

However, what stood out was a simple comparison he made. 

"Throughout this period the old-fashioned investors rushed to compare what amounted to be apples to oranges. The newer investors couldn't believe that anyone would see it any other way. Isn't that, for example, how GameStop (GME) could go from a failing video game store to a potentially fast-growing digital retailer of something of which we don't know yet? Of course. Why? Because Chewy (CHWY) is the Tesla of dog food; it's not a seller of canine treats, it's a digitizer of the pet food industry," Cramer wrote.

"I know that one day we might revert to thinking less magically and view all of these companies as what they might have set out to be before the stunning success of Tesla, but right now the newfound prevailing wisdom is clobbering the old kind and those who cling to the latter are destined to be run over by a Lucid or a Fisker or the original, Tesla, itself," he continued.

Read the full column here. 

Chewy as the Tesla of dog food? One has to wonder how key a stock like Chewy is for a portfolio if it is that much of an innovator.

Cramer told TheStreet Live every investor should be searching to find the next Tesla. "I genuinely believe the next Tesla's are out there," Cramer said. 

What Are You Doing With Your Stimulus?

"Jim Cramer told his viewers that they should celebrate by spending their stimulus checks wisely," TheStreet's Scott Rutt wrote in his Mad Money recap. "First, Cramer encouraged viewers to use their stimulus to pay off high-interest credit card debt. Second, investors must make sure they have health insurance. Nothing leads to bankruptcy faster than unpaid medical bills. Third, Cramer recommended your first $10,000 be placed in an S&P 500 index fund. Then, and only then, should investors consider investing in individual stocks for their "Mad Money" portfolios."

Read the full recap here. 

AMD Isn't Worried About the Semiconductor Chip Shortage

"AMD  (AMD) - Get Report unveiled its latest generation of high-performance processors. [AMD CEO Lisa] Su said today is a very exciting day for AMD, as their third-generation chips have double the performance of their closest rival. She said computing has moved to the data center and everyone from researchers to corporations want the best performance they can get," wrote Rutt.

"...When asked whether the semiconductor shortage is good or bad for AMD, Su explained that they're seeing enormous demand for all of their processors, which is very good for AMD," Rutt continued.

Cramer said his faith in AMD over Intel has a simple backing. "When you have a multiyear plan, why would you switch?" Cramer asked. 

Hear what Cramer is only telling members of his Action Alerts PLUS investing club in Tuesday's Daily Rundown. 

Daniel Kuhn contributed reporting to this article.