Right now, cyclical stocks like miners and industrials are in favor, said TheStreet's Jim Cramer, comanager of the Action Alerts PLUS portfolio, on Wednesday. He was taking viewer questions from the floor of the New York Stock Exchange.
That's put a pause on buying stocks like Hershey (HSY - Get Report) , which Cramer also noted caught a downgrade to sell from hold at Bank of America/Merrill Lynch. Although convenience store sales are going strong -- something Cramer extrapolated from the recent earnings results from PepsiCo (PEP - Get Report) -- he's going to wait for a larger pullback before calling it a buy.
As for banks, Cramer said he would rather buy Action Alerts PLUS name Bank of America (BAC - Get Report) over Wells Fargo (WFC - Get Report) (another Action Alerts PLUS holding) and Citigroup (C - Get Report) . BofA shares are climbing higher, closing the gap between its current price near $14.70 and its book value of roughly $16.
Another fine stock is AT&T (T - Get Report) , which one viewer owned in an IRA account. However, Cramer warned viewers to be careful with MLP stocks like Energy Transfer Partners (ETP) in retirement accounts, because the government has different tax rules for stocks like this.
Finally, Cramer touched on Valspar (VAL) , which was acquired by Sherwin-Williams (SHW - Get Report) in March. Sherwin-Williams, Whirlpool (WHR - Get Report) , Masco (MAS - Get Report) and Home Depot (HD - Get Report) are all ways for investors to play the trend in housewares, he explained.