Investors should consider purchasing stock of the first quarter’s biggest losers if the market shows signs of recovering on its own, CNBC’s Jim Cramer said Monday.
“This market’s screaming that we’re headed for a [Federal Reserve]-mandated slowdown, that could possibly become a Fed-mandated recession,” the “Mad Money” host said. “If we get more signs that inflation is cooling on its own, like the pullback in oil, then some of the hardest hit stocks might end up looking pretty enticing.”
The first quarter of 2022 was marked by rampant volatility. Russia’s ongoing invasion of Ukraine in February sent commodities prices including oil skyrocketing, while in March the Fed took its first interest rate hike in three years in an attempt to tamp down rising prices. Global Covid outbreaks last month also caused supply chain snarls as factories in key areas like China were forced to shutter.
Fed Chair Jay Powell in late March vowed to take strong action against inflation as needed.
Adding to the speculative market environment, a key part of the Treasury yield remained inverted on Monday after 2-year and 10-year Treasury yields shifted last week, heightening concerns about a possible recession coming. While inversions have historically preceded some economic recessions, they are not guaranteed indicators.
Cramer said that energy stocks performed the best during the first quarter due to soaring prices, while “recession-resistant” utility stocks also rallied. Cramer also listed the first quarter’s biggest winning and losing companies that are listed in the Dow Jones Industrial Average, S&P 500 and Nasdaq 100.
Here are the winners and losers:
Dow Jones Industrial Average
Disclosure: Cramer’s Charitable Trust owns shares of Chevron, Salesforce, Halliburton, Meta
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.