Jim Cramer Explains How to Pick Stocks During a Recession

Katherine Ross

Should you invest in the brands you know if the U.S. is in the recession foretold by market pundits, left and right?

As of early trading Wednesday, April 15, markets continue to grapple with the impact of the coronavirus pandemic with all three major indices down sharply midweek. At 10:30 A.M. ET, the Dow was down over 2.50% or around 600 points.

Markets are grappling with a series of negative data points include the largest decline in monthly retail sales.

Tuesday, the International Monetary Fund said the worst recession since the 1930s is likely on the horizon.

“It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago,” said IMF Economic Counsellor Gita Gopinath.

The U.S economy is projected to contract by 5.9 percent.

The worldwide economy continues to grapple with the impact of the coronavirus pandemic as worldwide cases of the virus have surpassed 2 million, with the United States remaining as the largest hot spot.

So should investors and new investors stick with the companies that they know and even are using as social distancing has forced the majority of the world to work from home?

Jim Cramer, TheStreet’s founder and ActionAlertsPLUS portfolio manager has always been the king of “doing your homework.”

In the video above, Jim Cramer breaks down why understanding balance sheets is more critical than ever when making portfolio moves. 

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