CNBC’s Jim Cramer on Wednesday named four stocks he thinks can keep investors steady through market turbulence.
“As someone who thinks staying in the market is a good idea, I urge you to consider companies that fit in the funnel … while avoiding almost everything else,” he said.
“It’s not that difficult a recipe, but it’s the one that works as we work our way through the disease [Federal Reserve]aggressive tightening cycle,” he added.
The Fed said it plans to conduct a series of rate hikes and tighten its balance sheet this year to offset rising inflation.
The Mad Money host’s comments come after the Dow Jones Industrial Average rose 0.7% on Wednesday, while the S&P 500 was broadly flat at 4,459.45. The Nasdaq Composite lost 1.2%.
Cramer also reiterated his mantra that investors need to stick with companies that are making profits, returning value to shareholders, and have stocks with reasonable valuations.
Here are his four chosen companies that meet his expectations:
Disney
“Unlike Netflix and its one-hit wonders, Disney has a massive, lucrative theme park complex, along with a whole host of iconic franchises. … Disney shouldn’t be tarred with the same broad brush as Netflix,” Cramer said, referring to Netflix’s dismal recent quarterly results.
Procter & Gamble
“Because Procter has some of the best brands in the world, it was free to pass on those price increases as it pleased. ‘ Kramer said.
Johnson&Johnson
“What is JNJ? How about the blue chip with the best balance sheet in America that has an amazing dividend and buyback,” Cramer said.
MorganStanley
“Morgan Stanley is arguably the best performing bank, as is perhaps Bank of America,” Cramer said.
Disclosure: Cramer’s Charitable Trust owns shares of Disney, Procter & Gamble and Morgan Stanley.