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When big money managers get caught looking the wrong way, look out for big moves in the market, Jim Cramer told his Mad Money viewers Thursday. With the U.S. dollar appearing to have peaked, Cramer explained, fund managers are scrambling for the most beaten-down sector out there, commodities.
That's how a stock like Alcoa (AA) could roar up 10% in a single day and how the beleaguered shares of Freeport-McMoRan (FCX) can shoot up over 17.9%. The fact is, there aren't a lot of commodity makers left anymore, so when the spotlight turns to the cyclicals you can get big moves.
But Cramer warned that playing big rotation moves like today's is best left to the pros. Home gamers, he said, are better off not chasing the big movers but buying slowly over time and only on weakness.
Executive Decision: John Stumpf
Stumpf said while Wall Street may be focused on interest rates, he runs Wells Fargo to perform well in any interest-rate environment. He said Wells Fargo's goal is to do more business with more customers and make a bigger impact in the communities they serve.
Stumpf admitted the oil and gas sector is under a lot of stress at the moment, but he noted that oil and gas accounts for less than 2% of Wells' current loan portfolio. On balance, however, lower oil prices create a lot of benefits in other areas that more than offset any oil-related loan losses. Stumpf was bullish on autos, housing and construction in many areas of the country.
When asked about the bank's stock buyback program, Stumpf said Wells Fargo remains committed to returning capital to shareholders, both through buybacks and its dividend.