Jim Cramer reveals his stock-picking playbook
CNBC's Jim Cramer said investors should start with a view on the economy and interest rates, then identify sectors and stocks positioned to benefit from that backdrop.
TL;DR
- Investors need a worldview, starting with the economy and interest rates, to hunt for stocks.
- The broader economy is relatively stable, and inflation may be nearing a peak, especially if oil prices fall.
- Technology and travel/leisure sectors face complications or depend on discretionary spending.
- Companies benefiting from lower oil prices and offering substantial dividends, like PepsiCo, are attractive.
- Finding a stock that fits a macro thesis is only the beginning; thorough company research is essential.