Sometimes good really is good enough, Jim Cramer told his Mad Money viewers Thursday, as he outlined 10 reasons why stocks continue to power higher almost daily.
First was the "Anointed Winners Theory," Cramer's assertion that money managers always want to be in winning stocks going into the end of the year because it makes them look smart. Second, money managers are piling into stocks that don't offer a lot of shares to their employees, like the airlines and industrials. Third, Cramer noted that our president likes the stock market and, unlike the last administration, actually talks about it.
The fourth reason the markets are heading higher was the potential passage of tax reform, something no one saw coming just a few weeks ago. Fifth, there really isn't a lot of global unrest outside of Venezuela. And sixth, the most recent employment numbers and other government data have all been strong.
Next, Cramer said that, yes, stocks are getting pricey, but they're still the only game in town when compared to bonds, real estate or other asset classes. Ninth on the list: the strong earnings from just about everyone outside of General Electric (GE - Get Report) .
Finally, Cramer said that investors are starting to realize that cynicism will get you nowhere. Things may not be perfect, but compared to where they were, the global economy is going pretty well.
Cramer and the AAP team are adding more Activision (ATVI - Get Report) shares. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Worried About Bank Stocks?
When it comes to investing, parabolas are bad news, Cramer warned viewers. Any time you see a parabolic move, you must think "unsustainable," no matter what it might be.
That's why the recent action in many of the banking stocks is so worrisome. Over the past 72 hours, many of the banks have soared, causing Cramer to sell shares of Citigroup (C - Get Report) for Action Alerts PLUS.
But are the bank stocks really that expensive? Shares of Bank of America (BAC - Get Report) trade at 15 times earnings, well above their historical average of just 12 times. With multiple interest rate hikes ahead though, those earnings are likely to rise, and with deregulation in the industry, profits could rise as well.
That's why Cramer said he remains bullish on the group over the long run, as we've never seen a government so pro-banking before.
Over on Real Money, Cramer says investors should carefully trim, but not abandon, surging bank stocks. Get more on his insights with a free trial subscription to Real Money.
Other Ways To Invest in Electric Cars
When you find a strong, multi-year secular growth trend, stick with it, but don't always run for the obvious players. In the case of electric vehicles, everyone already knows about Tesla (TSLA - Get Report) and General Motors (GM - Get Report) , but Cramer offered up three other ways to invest in electric cars.
Both Albemarle (ALB - Get Report) and FMC Corp (FMC - Get Report) are fairly boring specialty chemical makers. But both companies also manufacture lithium, a necessary component of modern batteries. Nearly 100 pounds of lithium is needed for a modern electric car, which is why shares of Albemarle are up 80% since Cramer first recommended it 18 months ago and FMC has risen by 60% since January.
Also on the electric car list is PPG Industries (PPG - Get Report) , the chemical and coatings maker that is a leader in coatings to insulate batteries and help make them fire retardant. PPG is another necessary component in every electric car, yet shares trade at just 14 times earnings.
With France, the UK and China all banning internal combustion engines in the coming decade, there's still plenty of room to grow for electric vehicles, which still only account for 2% of overall car sales. That means you can invest in Albemarle, FMC and PPG and put those investments away for the long term.
Executive Decision: IDEXX Laboratories
For his "Executive Decision" segment, Cramer sat down with Jonathan Ayers, chairman, president and CEO of IDEXX Laboratories (IDXX - Get Report) , the pet health diagnostics company with shares that are up 33% for the year, thanks in part to a five-cents-a-share earnings beat this quarter.
Idexx is forecasting 9% to 10% organic growth for 2017 and 9% to 11% growth for 2018. Ayers noted that IDEXX can give that guidance thanks to their consistent growth and visibility into their business.
Much of that growth is being driven by new products, Ayers explained, such as new fecal tests for dogs that improve sensitivity and can be provided right at the point of care for what IDEXX calls "real-time care."
IDEXX is also adding new tests for kidney disease to their standard chemistry panel that is also provided by vets, which will also allow for real-time results and less waiting and worrying.
Pets continue to be big business, with more and more millennials saying that pets make them happy and they're willing to spend whatever it takes on their care.
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 blessed this portfolio as properly diversified.
The second portfolio's top holdings included Nvidia (NVDA - Get Report) , Apple (AAPL - Get Report) , Alibaba (BABA - Get Report) , Square (SQ - Get Report) and Hewlett Packard Enterprise (HP - Get Report) .
Cramer said this entire portfolio trades like a single tech stock and needs some major changes. He said to keep Apple and Hewlett, but add UnitedHealth Group (UNH - Get Report) , United Technologies (UNH - Get Report) and Twenty-First Century Fox (FOXA) .
Cramer said this portfolio was also properly diversified.
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