MY NUMBER 1 RECOMMENDATION TO LOSE WEIGHT: CLICK HERE
Every weekday, the CNBC Investing Club with Jim Cramer hosts “The Morning Briefing” live at 10:20 a.m. ET. Here’s a recap of Monday’s key moments. The market needs a breakthrough to the bottom. Why Jim Invests in Two-Year Treasuries Quick Mentions: JNJ, LLY, AMZN, QCOM, DHR 1. The market needs a breakout to the bottom. Stocks were mixed on Monday, rebounding from earlier losses as the 10-year Treasury yield hit an 11-year high of 3.5% before easing slightly. Jim Cramer said rising bond yields — especially two-year yields, which have already hit 2007 highs and are approaching 4% — indicate the Federal Reserve’s expected 75 basis point rate hike at this week’s meeting will not be the last. A move of this magnitude would be the third meeting in a row since 75. Jim said stocks still face two big challenges in addition to the Fed’s inflation-tightening campaign: Russia’s war in Ukraine and rising Covid-related shutdowns in China. “You can’t have all three at once. If you want to bottom out, you need some break,” he said, thinking the Fed would likely be the first to break. It’s worth noting that the S&P 500 was still about 6% off its mid-June low, which remains the lowest for the year to date. 2. Why Jim’s Buying 2-Year Treasuries Jim stuck with his decision to buy 2-year Treasuries because he believes the returns have become more competitive with stock returns. As a reminder, Jim cannot buy individual stocks with his own money, according to the rules for financial journalists at CNBC. The main reason for his faith in 2-year Treasuries is his belief that the Fed will not raise its key interest rates above 4% as the economy shows more signs of slowing. So, if the Fed hits 75 basis points this week, it would raise the target range for the federal funds rate to 3% – 3.25%. The club is in a holding pattern ahead of the Fed meeting — and as the S&P 500’s short-range oscillator suggests the market is not yet oversold, despite last week’s big drop. We usually wait for the oscillator’s oversold signal before we start thinking about buying. 3. Quick Mentions: JNJ, LLY, AMZN, QCOM, DHR We have tips for new club members who may be looking to add to their portfolios. “I would buy Eli Lilly ( LLY ) and I would buy Amazon ( AMZN ) and do it here without hesitation,” Jim said, adding that he would also pick up shares of Johnson & Johnson ( JNJ ) if I didn’t already own any. He also said he would buy shares of Qualcomm ( QCOM ), which has an auto investor day later this week. As for Danaher (DHR), the stock currently provides the best value in the club’s portfolio, Jim said. (Jim Cramer’s charitable trust holds debt to JNJ, LLY, AMZN, QCOM, DHR. See here for a full list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC, he waits 72 hours after the trade alert is issued before he executes the trade. THE ABOVE INFORMATION IN THE INVESTING CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY SHALL EXIST OR BE CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
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MY NUMBER 1 RECOMMENDATION TO LOSE WEIGHT: CLICK HERE
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