- “The stock market has already seen peak inflation,” the Mad Money host commented. Which companies could skyrocket?
- “Fast-growth tech, financial or consumer discretionary names” will do well, according to Cramer.
- In this favorable context, the investor targeted three major companies: Microsoft, Wells Fargo and Target.
Jim Cramer believes that inflation peaked in July and will start to decline from now on. This will certainly benefit stocks, despite seeing a possible recession.
“The stock market has already seen peak inflation. I think you had to be deliberately obtuse to miss this because commodity prices have crashed a while ago, but now it’s undeniable.”
Cramer.
This opinion of the host of Mad Money was after learning that the consumer price index fell from 9.1% in June to 8.5% in July. This caused the shares to rise sharply for two consecutive days, while this Friday they are at a loss.
Cramer noted that the spike in inflation is a good sign for investors who have sold at a loss and are now looking to open new positions in the stock market.
“Peak inflation is nirvana for stocks, especially out-of-favor stocks like fast-growing techs, financials, or consumer discretionary names. That means you can buy everything from Microsoft to Wells Fargo to Target.”
Cramer.
However, the investor did not rule out that the US economy enters a recession, although this would not harm all companies equally.