Every weekday, the CNBC Investing Club with Jim Cramer does a live “morning session” at 10:20am ET. Here’s a recap of Friday’s highlights. Fed Not Ready to Stop Investing Mantra Reminder Looking to Buy 1. Fed Not Ready to Stop Stocks rallied on Friday after a rocky start after the entry of the core price index of personal consumption, the Federal Reserve’s preferred gauge of inflation. warmer than expected year after year. This suggests that inflation is still not coming down and that the Fed is not ready to stop tightening. The next piece of data that will help determine the Fed’s next move, whether it will raise rates by 25 or 50 basis points at the February meeting, is the December unemployment report. If unemployment drops to 4%, that’s good news for the central bank. 2. Follow Our Investment Mantra As we close out 2022, we remind investors of our mantra: Buy stocks of companies that do things and do things profitably, and return some of that cash to shareholders. Find stale, boring stocks that make money, weather a potential recession, and have sustainable growth. Stocks that have done well this year have also tended to report good earnings and return dividends. While these aren’t the stocks that investors tend to like, they’re the ones that tend to do well. Some defensive growth staples in the club’s portfolio include Constellation Brands ( STZ ), Costco ( COST ), and Humana ( HUM ). 3. Look for buys In this regard, we are looking for potential buys in this oversold market. However, we’re avoiding trend stocks and instead looking for cheap names based on price-to-earnings ratio. Cramer said he was tempted to review food stocks for potential buys, noting that JM Smucker ( SJM ), Campbell Soup ( CPB ) and General Mills ( GIS ) are companies that fit the investment mantra of the Club. (Jim Cramer’s Charitable Trust is long COST, HUM, STZ. See a full list of stocks here.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a share in his charitable trust portfolio. If Jim has discussed a stock on CNBC TV, wait 72 hours after issuing the trade alert before executing the trade. INFORMATION ON THE ALTERNATE INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, WITH OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTOR CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
