- “Mad Money” host Jim Cramer finds bull and bear cases in the Dow Jones industrial average’s biggest losers from the week’s sell-off.
- Cramer uses the exercise to understand the moves of the broader market and to find buys.
Even in a gyrating market like this one, sometimes the bargains are right in front of you, CNBC’s Jim Cramer said on Friday as the major averages lifted from their lows.
“I don’t want to say that the pain is over, but you should certainly prepare for more days like today. Remember, we’ve seen this movie before. The last time the market got crushed like we’ve seen over the last week was in January of 2016,” the “Mad Money” host said. “It turned out to be an epic buying opportunity, as the market rallied 10,000 points over the next two years.”
As focused as Cramer was on finding good buys, he also wanted to get a better sense of the market layout.
The stock of General Electric, the Dow’s biggest loser, fell under pressure weeks before the stock market’s most recent sell-off.
With a new CEO, John Flannery, trying to steady what many on Wall Street have long seen as a sinking ship rife with debt and discombobulated businesses, the negativity around General Electric has only grown in recent days.
“I don’t blame anyone for despising the stock of GE,” Cramer said.
But the “Mad Money” host noted one key factor that could bring General Electric back into favor with investors: rising oil prices.
“The new GE is heavily levered to oil. Not only does it own Baker Hughes, [but] its locomotives, turbines and airplane engines all sell better when energy is much higher,” he said. “But I’m not that sanguine about oil, so for now, I say you’ve got to stay away from GE. You don’t need the agita.”
“You need to be systematic with your bargain hunting, so … I want to go over the 10 biggest recent decliners in the Dow Jones Industrial average.”