CNBC’s Jim Cramer on Thursday presented an end-of-year list of “up stocks” that investors can buy to bet on a market rally through the end of the year.
“We call them stocks that are constantly rising and rarely falling.”Bad money“Host said.
The comments come a day after the Dow Jones Industrial Average and S&P 500 slid for two consecutive sessions, pulling back from the new highs they hit earlier this week. Both indices rose 0.15% and 0.39% respectively on Thursday, while the tech-heavy Nasdaq Composite rose 0.87%.
All three averages were well behind their session lows.
“On the rare occasion there is a market-wide retreat, like we had this morning before the averages rebounded,” Cramer said, “you have to buy these stocks hand over fist.”
Cramer recommended 10 stocks that he would buy on every pullback through 2020. He also suggested that traders willing to take a higher risk could place “deep-in-the-money call options”.
“I expect these 10 winners will continue to win as we near the end of the bizarre 2020,” he said.
Stock selection should continue to profit at least across the backend of a volatile 12 month trading period, he said. Cramer, himself a former hedge fund manager, said this is the time when institutional investors – the big funds that influence stock prices – are rushing into the stocks that have made some of the best returns of the year.
“Money managers pile into these stocks to show their investors how smart they are when they have to disclose their holdings by the end of the year,” he said. “You’re buying the top-up stock in late November because Wall Street has a herd mentality and you want the herd to work for you, not against you.”
square – $ 191.66, up 206% year-to-date
PayPal – $ 190.90, up 76%
Tesla – $ 499.27, up 497%
Roku – $ 255.67, up 91%
Amazon – $ 3,117.02, up 69%
service now – $ 514.33, up 82%
Octa – $ 232.45, up 101%
RingCentral – $ 296.90, up 76%
Twilio – $ 295.64, up 201%
target – $ 171.37, up 34%
Disclosure: Cramer’s charitable foundation owns shares in Amazon.