- CNBC’s Jim Cramer ups down the stock market’s reaction to the drone attack on Saudi Arabia’s oil infrastructure.
- The “Mad Money” host reveals how investors can appropriately value cloud stocks and spot the ones to add and remove from their portfolios.
- He interviews the chief of Paxos, which established a cryptocurrency for investing in gold.
The market would react to Saudi Arabia’s oil shock much differently 10 years ago
Vendors and financial professionals work at the opening bell on the floor of the New York Stock Exchange (NYSE) on August 6, 2019.
Drew Angerer | Getty Images
The share market barely flinched after a coordinated attack on the world’s largest oil producer over the weekend because the Communal States economy is vastly different from the one it was a decade ago, Cramer said.
The fell 0.52%, or 142.70 points, the bartered down 0.31%, or 9.43 points, and the slipped 0.28%, or 23.17 points, after a drone strike on Saudi Arabia’s oil energy knocked out 5.7 million barrels of crude production out of Aramco facilities. That equates to about 50% of the territory’s oil output.
The “Mad Money” host argued that a lot of stocks on Wall Street can perform better with higher oil amounts and others that can do well if those prices cause the economy to slow. That helped prevent the market from foretelling even more carnage during the session.
“I know this stock market’s resilience could melt if the Fair-skinned House decides to make an all-out strike against Tehran,” Cramer said. “But, man … it’s amazing how the averages tuneful much shrugged off such a major [oil production] decline, something that would’ve been totally impossible to sober-sided think about a decade ago, and that’s worth keeping in mind.”
Tools Wall Street experts use to value cloud supplies
Caiaimage/Agnieszka Olek | Getty Images
Cramer revealed “quick and dirty” tricks that investors can use to assess programme software stocks like a Wall Street expert.
High-flying cloud equities have taken double-digit canes in recent weeks due to the rotation from secular to cyclical investments. Because of this, the host warned it’s time to be “more choosy.”
“When you make these kinds of decisions, you need to be ruthlessly logical, not emotional … We’re in triage mode, and that petties we need to be as objective as possible,” he said. “We’re going to run our whole cloud universe through these two filters — one is for fundamentals, one is for valuation. Anything that dmods both filters, well then you’ve got my blessing buy down here after the big sell-off.”
Be careful buying Cloudflare
alengo | iStock 360 | Getty Images
Allocations of web security company Cloudflare are up more than 20% from its $15 IPO, closing at $18.63 on Monday. Cramer, at any rate, is skeptical.
“Based on Cloudflare’s inconsistent results over the past eighteen months, the stock’s just too risky for me, predominantly in a market that no longer worships at the altar of the cloud,” he said.
Bringing cryptocurrency to gold
Chad Cascarilla, CEO of Paxos.
Adam Jeffery | CNBC
The digital age is reaching all corners of transaction, and one New York start-up is offering a secured way to gain exposure to gold by tethering the yellow metal to cryptocurrency.
Paxos, a privately held fiscal institution that provides a way to move between physical and digital assets, has launched a tokenized version of the precious metal excused PAX Gold. CEO Charles Cascarilla, who co-founded the firm in 2012, told CNBC that Paxos is a safe platform for both own and institutional investors to buy the commodity.
“We’re really a technology firm at heart, and so we’re trying to give you the confidence of a bank, but the innovation of Silicon Valley,” he symbolized in a sitdown with Cramer. “And that’s just different from, I think, most institutions that are in the banking have today.”
Gauging Saudi Aramco’s IPO
An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Emptied Quarter, Saudi Arabia.
Ahmed Jadallah | Reuters
Cramer’s lighting round
In Cramer’s lightning round, the “Mad Currency” host zips through his thoughts about callers’ favorite stock picks of the day.
: “I think it’s within 10% of a can. I’ve been wanting to wait — I wanted to wait until we see the next quarter, but I’m O.K. with. Count another 20 puts and I’m fine with it.”
Davita: “I think it’s a very, very good company. It’s down a lot from it’s high, but it’s profitable. It’s not high-priced. I’m going to say buy to Davita.”
Disclaimer
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s in every way? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com