Be ready for more stock market volatility, Jim Cramer cautioned his Mad Money viewers Monday. Cramer said we're likely to see more short-term pain to get to those long-term gains.
We're still in the crux of earnings season, Cramer reminded viewers, and with so many stocks up big going into earnings, many are now poised to fail. That's the opportunity for long-term investors to buy, buy, buy, however, because many of these stocks won't stay down for long.
When it comes to retirement savings, the 2.7% interest rate of Treasury bonds still can't compete with high quality companies with growing dividends. If you're planning to live into your 80s or 90s, you need to not abandon equities now.
In the short term however, stocks like Apple (AAPL - Get Report) , an Action Alerts PLUS holding, are in a precarious position. So many analysts hyped up the iPhone X "super cycle" that it's unlikely Apple will live up to the make-believe hype. Over the long term, Apple will continue to make better phones every year, with growing services and dividends. This week though, that might not be enough.
Only Netflix (NFLX - Get Report) and Amazon (AMZN - Get Report) appear to be immune to all the hype. Cramer was also bullish on the cyclical stocks, many of which are in the middle of multi-year expansions. He also said the banks are buyable on any dips, with JPMorgan Chase (JPM - Get Report) remaining a favorite.
Over on Real Money, Cramer says there's a bunch of idiots standing there, almost trying to get bad prices. Get more of his insights with a free trial subscription to Real Money.
Off the Charts: Marc Chaikin on the Healthcare Sector
In the "Off The Charts" segment, Cramer checked in with colleague Marc Chaikin to explore the curious rally in the healthcare sector, a group that never heads higher at the same time as the industrials and financials.
Chaikin, a stock analyst and founder and CEO of Chaikin Analytics, LLC, first looked at the Healthcare SPDR ETF (XLV - Get Report) , noting the index's strong breakout -- up more than 10% so far this year. To determine if the rally can continue, he next looked at three individual healthcare stocks.
Chaikin felt that Centene (CNC - Get Report) had a picture perfect chart with a strong floor of support at the 50-day moving average. The company reports on Feb. 6 and he would be a buyer on any weakness.
So, too, with Cardinal Health (CAH - Get Report) , which broke a downtrend at the end of last year and has seen a lot of strength since. The Chaikin Money Flow, or CMF, turned positive two months ago.
Chaikin was bearish on the stock of Amgen (AMGN - Get Report) , despite the company making new all-time highs todays. That's because the stock has seen brutal declines after its past three earnings reports, and this quarter, the stock has run up ahead of earnings again.
Overall, Chaikin felt the healthcare rally was likely to continue, but not every healthcare stock will be a winner.
Cramer and the AAP team are reminding their investment club members that whenever there is a broader market selloff during earnings season, they believe that buying opportunities are created in specific cases. Get in on the conversation with a free trial subscription to Action Alerts PLUS.
Whirlpool's Value Rises
Finding an industrial value stock is hard to come by in a market where the industrials have been on fire, but Cramer said that after reporting mixed results and confounding the analysts, Whirlpool (WHR - Get Report) may indeed be the rare bird you've been looking for.
Whirlpool has been a serial disappointer for years, Cramer said, and just last year the company was thought to be in the sights of Amazon, after the online retailer partnered up with Sears Holdings (SHLD) . This quarter was no different, with Whirlpool posting an 11-cents-a-share earnings beat, but on weaker sales and weaker guidance.
But just last week, Whirlpool caught a break, as the Trump administration levied a 20% to 50% tariff on imported washing machines in an effort to level the playing field. The move, which could be bad for consumers looking for Samsung or LG appliances, will likely be a windfall for Whirlpool.
Shares of Whirlpool trade for just 12 times earnings, well below the 18 to 22 times multiple seen by its peers. That makes Whirlpool a tremendous value given that the company may finally be in a position to under promise and over deliver.
Executive Decision: American Electric Power
For his "Executive Decision" segment, Cramer again spoke with Nick Akins, chairman, president and CEO of American Electric Power (AEP - Get Report) , the utility that's down 10% from its 2017 highs, but still yields 3.65%.
American Electric Power again beat on earnings, Akins said, but overall, the utility sector continues to be down on Wall Street. He said the recent tax reform savings will be passed through to customers as lower rates and that in turn will increase growth for AEP.
Even without tax reforms, AEP saw its industrial business expand 5.6% last quarter with residential usage also expanding. Akins said among the only down spots were retailers.
American Electric Power continues to be excited about its coming wind farm in Oklahoma, which at $4.5 billion, will be the largest wind installation in America. Wind continues to be competitive energy source with coal and natural gas, Akins said.
Wynn was accused of sexual misconduct by employees at his flagship Las Vegas casino. He was subsequently ousted as finance chairman of the Republican National Committee.
Cramer said Wynn has a management style like no other and anyone who has bet against him in the past has gotten steamrolled.
Steve Wynn is Wynn resorts, Cramer said, and without him, the company would likely stumble. Shares may have already fallen $40, but there are still many issues that could be in jeopardy -- mainly the company's expansion plans in multiple states as well as their gaming license renewal in China next year.
With all this indecision, Cramer said he's taking a pass on Wynn Resorts.
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