Jim Cramer, the host of Mad Money, reflected on the uncertainty surrounding the year 2025, focusing on several macroeconomic questions that are top of mind for him. One of the important questions Cramer was the future movement of the 10-year Treasury yield.
Specifically, he wondered whether it would drop to 4%, climb to 5%, or simply stay where it is. According to Cramer, this is the most important question currently facing the market. He pointed out that ever since the Federal Reserve began cutting short-term rates in September 2024, an unusual dynamic has taken place.
From the moment the first rate cut occurred, long-term interest rates began to rise sharply, a trend Cramer found highly unconventional. Cramer posed the crucial question: will the yield continue to rise toward that 5% mark, or will it begin to fall again?
“As far as stocks are concerned, I think they’ll do well if the yield on the 10-year peaks out and go slower, even if it basically sits here between 4.5% and 4.6%, the market should do fine. However, if long rates keep climbing with the 10-year reaching 5%, well, it could be truly miserable for the stock market at least short term.”
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Another critical issue Cramer pondered was the state of the labor market. Despite signs of economic softening in recent months, unemployment remains exceptionally low, which is contributing to a strong overall labor market. According to Cramer, this is the reason many are hopeful for a “soft landing” after the Federal Reserve’s aggressive rate hikes in 2022 and 2023.
“So can the labor market stay strong this year? Right now, I’m betting it can. Remember the labor market was great during the first three years of the original Trump administration. We had 3.5% unemployment right before COVID hit and everything fell apart. Plus, if Trump pushes through mass deportations… it could cause a major labor shortage. If anything, we probably should be worrying about whether the labor market will get too tight, causing severe wage inflation.”
9 Stocks Jim Cramer Talked About
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during episodes of Mad Money aired on January 3rd and January 6th. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
9 Stocks Jim Cramer Talked About
9. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 11
While Cramer admitted that SoundHound AI, Inc. (NASDAQ:SOUN) has appealing technology, he called it a “short squeeze” and noted that the company loses money constantly.
“You got to ring the register on some of that. Here’s the problem with SoundHound: It’s just a chronic money loser and because of that, it actually, I think if I were them I’d sell about 50 million shares right here down in the hole and make it so you’d never worry about the cash position because they do have some interesting technology but at this point, it is a short squeeze and a short squeeze only. Until they do that stock and make it so their balance sheet’s better because they keep losing money.”
SoundHound AI (NASDAQ:SOUN) develops voice AI technology that helps businesses deliver conversational experiences across various industries. Its offerings include tools for creating personalized voice assistants and improving customer service through real-time data integration.
8. Hafnia Limited (NYSE:HAFN)
Number of Hedge Fund Holders: 13
While Cramer was enthusiastic about Hafnia Limited (NYSE:HAFN), he also suggested exercising caution.
“Oh, it’s so, look, we got that huge dividend. It looks so juicy. Those are stocks that you must avoid. You gotta trust me in this. You’ll get a dividend or two, but those stocks are saying, the dividends saying, look out below.”
Hafnia (NYSE:HAFN) operates a fleet of vessels that transport refined oil products, vegetable oil, and chemicals to various national and international companies in the oil, chemical, and utility sectors. The stock has gained over 45% over the last 5 years and it has a dividend yield of around 26%.
7. Riot Platforms, Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 19
Cramer highlighted that Riot Platforms, Inc. (NASDAQ:RIOT) is a bitcoin mining company and said:
“Okay, well, Riot Platforms, I have to go to my chief scientist Ben Stoto on that. He points out that it’s a Bitcoin miner and can you get a better business than mining Bitcoin?”
Riot Platforms (NASDAQ:RIOT) is a bitcoin mining company that offers data center services, and infrastructure for institutional miners and designs power distribution equipment. When a caller asked Cramer about the company in March 2024, he commented:
“I’d rather just own Bitcoin…Or the Ethereum ETF that’s going to be coming. Either one of those I think is superior to buying Riot Platforms.”
6. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Holders: 27
In response to a caller’s question about CRISPR Therapeutics AG (NASDAQ:CRSP), Cramer said:
“You know, I want to own, I want to own CRISPR because I keep seeing their name come up and all the science papers that I read and I read quite a bit of them, but boy, the stock’s been a tough own. Let’s put some away and then if it goes lower, we’ll buy more. But I, I understand. How could that company keep losing money like this? It is just, it’s Moderna-like… in the money they throw in the chimney.”
CRISPR (NASDAQ:CRSP) develops gene-based medicines using its CRISPR/Cas9 platform, with therapies targeting diseases like hemoglobinopathies, cancer, and type 1 diabetes.
5. Lincoln Electric Holdings, Inc. (NASDAQ:LECO)
Number of Hedge Fund Holders: 32
While Cramer acknowledged that Lincoln Electric Holdings, Inc. (NASDAQ:LECO) missed revenues, he also said to take advantage of the dip and buy the stock.
“It did miss, it missed the revenues, okay, but you know what, this is a company that is so down from where it was, it’s down 80 points. I think you can buy it. I like the company’s got welding and welding is a, there are very few welders around, but that is a, that is a great manufacturer.”
Lincoln Electric (NASDAQ:LECO) manufactures and sells welding, cutting, and brazing products, including equipment, accessories, and automated solutions. The stock is down more than 13% over the past year.
4. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 40
Cramer recommended buying Cleveland-Cliffs Inc. (NYSE:CLF) stock but cautioned that investors should be prepared for a potential small drop in price.
“Well, I know I was, I was into the company today, trying to get them to come on tonight’s show. Now here’s the problem: Honestly, the steel stocks are the worst stocks in the market and I think that you could buy this stock and if you’re willing to take a point or two down, then I think it’s okay but you have to accept the fact that that’s exactly what could occur.”
Cleveland-Cliffs (NYSE:CLF) is a North American producer of flat-rolled steel, providing a range of steel products. As mentioned in our article, Jim Cramer Recently Discussed These 15 Stocks & The California Wildfires, Cramer recently remarked:
“Look I think that we have to think twice about whether this one would be uh, Trump would kill it. I know when Trump was running he was against the idea of Cleveland Cliffs, or he was against the idea of Japan, it’s Nippon. Not Cleveland Cliffs. But I will say, Cleveland Cliffs very close to President-elect Trump, and I think that there is a possibility that something could happen here. So I do believe, when you speak to Lorenzo Goncalves, I’m telling you David, he is so close to Trump that I really think that Lorenzo has got it done. I think that this is a very interesting deal. I think it’s fabulous for Nucor. Nucor’s the one that I would buy. I’ve been saying Cliffs gets this from the beginning. I’ve been saying Cliffs gets this from the beginning. I’m doubling down. They’re gonna get it. Cliffs is gonna get it. Lorenzo’s a winner.”
3. Seagate Technology Holdings plc (NASDAQ:STX)
Number of Hedge Fund Holders: 46
When a caller asked Cramer about Seagate Technology Holdings plc (NASDAQ:STX), he said:
“You know what, this stock, I have to tell you, it has never ever done well in the time that I’ve watched it and it’s always been cheap. I’m calling it a value trap. If you like Seagate, I say that you will love Broadcom.”
Seagate (NASDAQ:STX) provides data storage solutions, including hard drives, solid-state drives, and external storage for various applications like enterprise and gaming. Back in 2022, when Cramer was asked about the company, he commented:
“I don’t want you to buy any more, because it’s just not a high-quality enough stock during this period in the cycle. … It’s not for this market.”
2. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 67
Cramer mentioned Caesars Entertainment, Inc. (NASDAQ:CZR) during an episode. Here’s what Mad Money’s host had to say:
“Yeah, I, I’m not that high on the gambling stocks right now. There’s, it feels like there’s too many of them and we need a consolidation. The one that I like is… DraftKings, but that’s come down quite a bit too. It’s not been a good group.”
Caesars Entertainment (NASDAQ:CZR) operates as a gaming and hospitality company, managing properties with gaming options, hotels, dining, and entertainment venues, while also offering online sports betting and iGaming services. Over the past 12 months, the stock has declined more than 21%.
1. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 82
Cramer likes The Home Depot, Inc. (NYSE:HD) but acknowledged a potential head-and-shoulders pattern. However, Cramer saw it as an opportunity to buy the stock, despite the perceived risk.
“I like Home Depot. You know… Jeff Marks and I, we were going back and forth and back and forth. I wanted to pull the trigger and buy more. He reminds me, look, we already bought some at this area, but let me tell you something, got a head and shoulders pattern, people think’s gonna break down. I want to buy, buy, buy right into that alleged head and shoulders problem.”
The Home Depot, Inc. (NYSE:HD) offers a wide range of home improvement products, including building materials, décor, and lawn and garden items, along with installation services and tool rentals for various home projects.
Carillon Tower Advisers stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q3 2024 investor letter:
“While Home Depot, Inc.’s (NYSE:HD) recent reported earnings were somewhat tepid, the market seems to be pricing in an inversion of the company’s sales, driven by lower interest rates. Home Depot reported its seventh consecutive quarter of same-store sales declines, giving back substantial gains that it enjoyed during the pandemic. High mortgage rates have also put a damper on existing home sales. People typically spend the most on home repairs and improvements in years when they buy or sell houses, often conducting both transactions in the same year.”
While we acknowledge the potential of The Home Depot, Inc. (NYSE:HD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
