Jim Cramer believes that individual investors can beat the market. That
is, he thinks by holding between 5 and 10 stocks and then actively
managing those positions, individual investors can do better than the
market broadly.
Following is how Cramer would put money to work, right here and right now.
1. EOG – Energy sector: "I would hold an oil and gas stock as a way to play the American energy renaissance. I like EOG Resources, which has been hammered of late," he said.
2. Google or Salesforce.com – Tech sector:
"Not only would I hold a tech stock, but I would hold something that's
riding the wave of social, mobile and the cloud. I think you can't go
wrong with Google. Or if you're feeling more aggressive look at Salesforce.com," Cramer said.
3. Johnson Controls – Industrial sector: "I believe the global economy is now in recovery mode therefore I'd own an industrial. I like Johnson Controls very much because I believe it could unlock a tremendous amount of value by breaking itself up."
4. Costco or Whole Foods – Retail sector:
Cramer believes that this sector presents many opportunities, broadly.
However, if you were to start a position immediately, Cramer likes Costco on the current pullback or Whole Foods which he calls a long-term bet on "the all-powerful natural and organic trend."
5. Merck or Gilead – Health Care sector: "If I wanted to be conservative, I'd go with Merck,
a big pharma company that has a solid 3.1% yield and major
restructuring going on. Or, if I wanted to be more aggressive, I'd buy Gilead," as a bet on the companies promising new treatments.
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