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) , 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) -- 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) over Wells Fargo (WFC) (another Action Alerts PLUS holding) and Citigroup (C) . BofA shares are climbing higher, closing the gap between its current price near $14.70 and its book value of roughly $16.
"I like that one very much," Cramer said of Bank of America. "Not just as a bank but for its brokerage business in Merrill Lynch as well, preferring it over others like Cowen (COWN) ."