Former hedge fund manager and television personality Jim Cramer has some advice for investors in these unpredictable times: all things being equal, stock-picking trumps traditional index investing now.
The host of CNBC’s “Mad Money” elaborated on where to find the market’s bright spots. (CNBC)
The hypothetical index of about 100 equities, dubbed the “Mad Covid-19 Index,” touch 17 sectors where investors can expect will produce a return in this “tricky environment,” he said.
Each stock is outperforming the S&P 500 since the start of 2020. As a group, the basket of stocks would be up nearly 10% year-to-date, Cramer said. The benchmark index, which has been reeling from the coronavirus outbreak, is down roughly 11% in the same timeframe.
“There are just so many obvious winners and obvious losers. Please don’t make life difficult for yourself by owning the losers,” he said.
Cramer’s so-called basket of stocks run the gambit from retail survivors, like Costco and Walmart, to Cloud software, including Salesforce.com and Zoom Video.
Click here to continue reading and for a full list of his picks.