CNBC’s Jim Cramer gave investors his top stock picks for three different bearish results Thursday.
“We have become mild, we have become moderate and we have become severe. …. Can we avoid a recession altogether? There is always a chance,” but investors should not hold their breath, he said.
Investors have piled into tech stocks this week, betting on the bottom of the market and driving this week’s rally. all major averages received on thursday,
,mad Money“When he is outlining three possible scenarios for the economy and his preferred stocks for each, investors should not build their portfolios by betting on just one outcome,” the host said. Need something,” he said.
Here are their top stocks for a potential mild, moderate or severe downturn.
mild
Cramer said a mild recession is possible, as banks have reported strong quarters recently, many people have money left over during the pandemic and the job market is still strong.
“Companies’ earnings will still fall, but many stocks have already declined in anticipation of a deep recession. … They’re doing pretty well here because they’re at the very bottom,” he said.
Here’s their list of stocks that are suitable for a mild downturn:
moderate
If Wall Street starts to expect a moderate recession, investors will have to pull their horns and be more selective about their choices, according to Cramer.
“You can buy stocks with higher yields as interest rates start to drop, which will reduce competition in the bond market. But you only need to buy high-yielding stocks that can still make their numbers,” he said. ,” They said.
Here’s his list of stocks suitable for a moderate bearish break:
Serious
In the case of a severe recession, “you have to buy the final defensive play. … anything related to advertising, tech and industry will crush you,” Cramer said.
Here is his list of stocks that are apt for a severe downturn:
Disclosure: Cramer’s Charitable Trust owns shares in Amazon, Constellation Brands, Coterra, Johnson & Johnson and Pioneer Natural Resources.