During the April Monthly Meeting of the Investing Club, members had the opportunity to ask questions directly to Jim Cramer and Jeff Marks. One member asked about Wells Fargo, which has seen a significant increase in stock price and whether it’s wise to trim some holdings. Jeff Marks suggested that trimming is due as the stock is well above a 5% weighting in the portfolio and has had a great run. Another question was regarding investing in gold, to which Jim Cramer recommended buying gold bullion from Costco’s website as the best way to invest in gold.
Another member asked about the level of cash the Investing Club keeps and whether they plus-up in cash prior to paying out gains and dividends to charity. Jeff Marks explained that they do adjust their cash position based on market conditions, such as raising cash during parabolic moves in the market and deploying it during oversold periods. When asked about sectors to focus on with the upcoming presidential election and summer approaching, Jim Cramer mentioned defense, mergers, and oil and gas as sectors that may be influenced by government policies.
A question was raised about Abbott Labs and their upcoming premature baby formula trial in July. Jim Cramer discussed the trial and indicated that weakness in the stock presents an opportunity to buy at a discount. Jeff Marks expressed confidence in Abbott Labs’ strong outlook based on their previous earnings beat and raised outlooks. Jim Cramer also discussed a previous trade suggestion involving Chinese stocks Alibaba, Baidu, PDD Holdings, and JD.com, suggesting that the trade should be continued as the Chinese market may be manipulated in favor of certain stocks.
Regarding the stock of Eaton, which has significantly increased in value since the initial buy, the question was raised about whether more should be bought or if the position should be sold and moved on to something else. Jeff Marks advised against selling the stock and suggested a potential buying opportunity if the stock pulls back to around $300 per share. Jim Cramer and Jeff Marks also discussed the general secular trends guiding their investments, such as the growth of data centers, AI, cybersecurity, and reindustrialization.
Foot Locker’s stock was below the level the Club last sold it, and the question was asked whether it’s time to start buying for a turnaround. Jeff Marks suggested waiting for more progress on the turnaround before buying. Finally, in response to a question about riding out a volatile market, Jim Cramer emphasized the importance of holding cash during declines to make clear-headed decisions. He also mentioned monitoring the cash position of the Trust, which is currently at 8.3%. As a subscriber to the CNBC Investing Club, members receive trade alerts before Jim makes a trade and can benefit from his insights and strategies in navigating the market.
