In his recent appearance on CNBC’s *Squawk on the Street*, investment expert Jim Cramer shed light on the current spending trends among wealthy Americans and offered insights into 16 stocks that are capturing his attention. Cramer referenced coverage by Robert Frank from *The Wall Street Journal*, emphasizing that affluent consumers are continuing to spend robustly. He noted, “The wealth effect is going the other way,” suggesting a notable resilience in spending habits among high-income individuals.
Cramer highlighted that tax cuts for wealthy Americans have increased disposable income, stating, “Wealthy people’s taxes went down… there is a lot of money coming.” He believes this financial cushion will support consumer spending as the economy navigates through challenging times.
Stocks Cramer is Watching
Cramer’s list includes a variety of companies across different sectors. Notably, he discussed Live Nation Entertainment, Inc. (NYSE:LYV), which he believes remains a strong buy despite recent price fluctuations. Following a 20% drop in StubHub’s stock, Cramer defended Live Nation, citing its operational expertise and the company’s ability to thrive in the experiential economy. “I would buy that stock on the decline because they are very, very good at what they do,” he remarked.
Another company under Cramer’s spotlight is Royal Caribbean Cruises Ltd. (NYSE:RCL). Despite a 15% decline in shares over the past month, he expressed confidence in the firm’s fundamentals, emphasizing that their fiscal third-quarter results were “really not all that bad.” Cramer noted that expectations surrounding their fourth-quarter profit guidance may have contributed to the stock’s downturn.
Consumer Goods and Tech Insights
Cramer also addressed Starbucks Corporation (NASDAQ:SBUX), which is undergoing a tough turnaround. He pointed out a recent insider purchase by board member Jørgen Vig Knudstorp of 11,700 shares at $85 each, indicating confidence in the company’s future. Cramer remains optimistic about Starbucks, highlighting that “the turnaround can be a slow process.”
In the technology sector, Apple Inc. (NASDAQ:AAPL) continues to be a favorite of Cramer. He praised the company’s robust balance sheet, noting total assets of $364 billion. Additionally, he discussed a potential deal between Apple and Google regarding AI initiatives, which he called “terrific,” while stating, “Apple’s the best balance sheet I’ve ever seen.”
Cramer also focused on Microsoft Corporation (NASDAQ:MSFT), particularly its cloud computing and AI capabilities. He acknowledged the challenges in consumer AI applications but expressed confidence in its business-to-business solutions.
Cramer’s insights into these stocks reflect a broader strategy of following hedge fund investments, which have historically outperformed the market. His quarterly newsletter, which selects stocks based on hedge fund activity, has reportedly achieved a return of 427.7% since May 2014.
As Cramer continues to monitor these stocks amid evolving economic conditions, his analysis serves as a guide for investors looking to navigate the complexities of the current market. With a focus on both consumer behavior and company fundamentals, he remains a pivotal voice in investment discussions.
