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Avoid the Federal Reserve drama, Jim Cramer told his Mad Money viewers Thursday. Instead, focus on finding stocks of high-quality companies at good prices.
Yes, it's true, the Fed didn't raise interest rates Wednesay, so we can all finally rest easy, right? Not so fast, Cramer told viewers. It won't be long before the fearmongers and pundits start second-guessing the Fed's next move in November.
Cramer said the problem is the asymmetric nature of our media. If you're bullish on the market and you're wrong, you will be chastised forever. But if you're bearish and wrong there is zero accountability. This leads to an entire cohort of "experts" who were wrong, are wrong and will continue to be wrong.
But rather than listen to the bears, Cramer suggested focusing on what really matters, the companies themselves. This quarter proved to be the best of the year for earnings. Companies like consumer packaged goods are once again back in vogue and, thanks to the Fed, the oil stocks are back in style, as a weaker U.S. dollar will only help keep oil prices afloat.
If a beaten-down stock like Bed Bath & Beyond (BBBY) can rally, just about any stock can, Cramer concluded.
Executive Decision: Frank Calderoni
For his "Executive Decision" segment, Cramer sat down with Frank Calderoni, CFO of Red Hat (RHT) , the software maker that just delivered a 1 cent-a-share earnings beat on a 19% rise in revenue. Shares of Red Hat are up 9% since Cramer last checked in three months ago, thanks in part to a 4% rally on today's news.
Calderoni said Red Hat's growth stems from repeat customers and from existing customers expanding into more services with Red Hat. Customers are spending more as Red Hat becomes more pervasive in their company.
Red Hat offers not only operating systems, Calderoni said, but also a full stack of software that customers can use for on-premise servers or servers in the cloud. Red Hat's suite of products are flexible enough to be deployed anywhere, allowing customers to innovate and grow.
When asked about IT spending at larger companies, Calderoni said companies are spending more, but at a slower rate than they used to. Part of that decline, he added, stems from the efficiencies offered by companies like Red Hat.
Cramer said shares of Red Hat are simply not high enough given how great a quarter it just reported.
Dear Jeff Bezos: Run the Stock Market
What if Amazon.com (AMZN) created its own stock market? That was the hypothetical situation Cramer imagined for viewers, a stock market that was both fair and honest, but also easy to use for even the simplest of investors.
Imagine, Cramer said, going to Amazon and searching for "Stocks that do well with low interest rates" and getting back "Investors who like low interest rates bought..." Wouldn't it be great if investing was that simple?
Better still, if Amazon was in charge, those stocks would be in your portfolio with just a click. Amazon makes it super simple to buy books, music and just about everything else. Why not stocks?
Cramer said the problem with our existing stock market is individual investors simply cannot compete with the algorithms of high-frequency traders. They will always be faster than you and me, he said, but they might not be faster than Amazon.
In a personal plea to Amazon CEO Jeff Bezos, Cramer said, "Please, make it happen."
Executive Decision: Laurent Potdevin
In his second "Executive Decision" segment, Cramer went on location with Laurent Potdevin, CEO of Lululemon Athletica (LULU) , the athletic apparel maker that saw shares plummet 10% after it reported in-line earnings three weeks ago. Shares of Lulu are still up 25% for the year.
Potdevin said Lulu is about people and giving people products that fit their lives. Lulu is more of a lifestyle that apparel is apart of, the perfect marriage of fashion and function.
When asked about his company's vision, Potdevin explained that younger people and Millennials are drawn to purpose-driven brands, which is why Lulu is an active member of the communities it serves. He added the mall is not dead, as many have claimed, and a good digital strategy has augmented the company's retail footprint.
Cramer said Lulu remains a rare gem among an increasingly difficult retail environment.
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
Cramer said this portfolio was perfectly diversified.
Cramer said this portfolio cannot have both Apple and Skyworks. He recommended selling Skyworks and adding a drug stock, such as Johnson & Johnson.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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