Because of stretched valuations and rising rates of interest, many Wall Road strategists count on vital inventory market corrections on the horizon.
However CNBC’s Jim Cramer believes there are nonetheless loads of shopping for alternatives out there — even over the very brief time period.
The host of Mad Cash defined that that is the time of yr when institutional cash managers make up their minds concerning the funding themes that really work.
Inside that context, Cramer supplied 5 megatrends for the remainder of 2021, including that they’ll be “borderline unstoppable” over the following two months — one in every of them may very well be price buying with a few of your leftover pennies.
Automobiles of the longer term
Cramer likes electrical automobile shares in addition to corporations engaged on superior driver help techniques.
“Tesla’s probably the most simple strategy to play it,” he stated.
Tesla shares pulled again sharply this week after CEO Elon Musk polled his Twitter followers on whether or not he ought to promote 10% of his holdings. The inventory continues to be up greater than 160% over the previous yr.
Cramer additionally likes ON Semiconductor due to the corporate’s established place because the “must-buy chipmaker” within the auto business
To make sure, EV-related shares have already delivered sizable returns this yr. Tesla, as an illustration, now trades at over $1,000 per share.
However today, you need to use an investing app to purchase fractions of shares with as a lot cash as you might be keen to spend.
Clear vitality
Irrespective of the place you stand on the subject of local weather change, it’s laborious to disclaim that the aim of net-zero emissions has change into a significant funding theme.
Cramer likes hydrogen gas cell know-how as a strategy to achieve publicity to the clear vitality megatrend, particularly mentioning gas cell producer Plug Energy.
Whereas he cautioned that the corporate continues to be a income story (not an earnings story), Cramer is betting that inexperienced traders will proceed to purchase the shares by means of to the tip of the yr.
Photo voltaic panel supplier Enphase Vitality is one other different vitality inventory that Cramer likes.
“There can be bids underneath Enphase each single time it goes decrease,” he predicted, “and that’s when you possibly can choose some up.”
Metaverse
Consider metaverse as an in depth on-line world the place individuals work together through digital avatars. It’s made potential by means of the Web, standard private computing, and digital and augmented actuality headsets.
Cramer thinks the theme is gaining momentum amongst skilled traders.
“[W]hat issues is that Wall Road has anointed it, so it really works for the following two months on the very least.”
He talked about three particular corporations to realize entry to the metaverse: Meta Platforms (previously Fb), chipmaker Nvidia, and online game software program developer Unity Software program.
Each Meta and Unity are up round 20% because the starting of 2021. Nvidia shares, in the meantime, have surged a whopping 139%.
Cloud computing
Cramer is a giant fan of cloud computing — and for good motive.
In response to know-how researcher Gartner, spending on cloud computing will rise to greater than $360 billion in 2022. And Cramer tapped a number of large-cap tech shares as one of the best ways to take benefit.
Cramer likes Microsoft because of its more and more engaging Azure section, Salesforce as a result of it goes “greater on a regular basis,” Adobe for its creativity software program, and Snowflake for its experience in information analytics.
To make sure, none of those shares are low-cost — whether or not you take a look at their nominal share costs or valuation metrics. Adobe, as an illustration, is priced at over $660 apiece with a P/E ratio above 50.
However you don’t have to start out massive. Lately, you possibly can construct your individual know-how portfolio simply through the use of some digital nickels and dimes.
Vitality
Whereas the oil and gasoline sector isn’t as thrilling because the metaverse, Cramer says it shouldn’t be ignored — notably if you happen to’re searching for revenue.
“In order for you yield, go along with Chevron,” Cramer stated.
Because the second-largest oil firm within the U.S., Chevron pays a quarterly dividend of $1.34 per share, translating to a wholesome annual yield of 4.6%.
If progress and a variable dividend coverage are what you need, Cramer recommends Pioneer Pure Sources and Devon Vitality.
Each Pioneer and Devon posted file free money circulation in Q3. They’ve additionally lately introduced substantial dividend will increase.
“Even when oil and gasoline costs come down, [fund managers are] going to purchase these shares,” Cramer stated.
A finer thought
Should you’d somewhat not pour any new cash into shares proper now, it could be powerful guilty you.
Inflation simply hit a 31-year excessive, in spite of everything, and it’s solely a matter of time earlier than the Fed begins to boost rates of interest.
If you wish to spend money on one thing that has little correlation with the ups and downs of the inventory market, you would possibly wish to think about an missed asset — wonderful artwork.
Up to date art work has already outperformed the S&P 500 by a commanding 174% over the previous 25 years, in line with the Citi World Artwork Market chart.
Investing in wonderful artwork by the likes of Banksy and Andy Warhol was once an choice just for the ultra-rich like Cramer.
However with a brand new investing platform, you possibly can spend money on iconic artworks too, identical to Jeff Bezos and Invoice Gates.
This text offers info solely and shouldn’t be construed as recommendation. It’s offered with out guarantee of any type.