CNBC’s Jim Cramer on Wednesday reviewed what he thinks will be major themes on the market in 2024, including strength in the health-care sector due to weight loss drugs and success for mergers and acquisitions. With the major indexes declining on Wednesday, Cramer thought it would be helpful to tell investors what broader market themes they can reference on down days.
“You need cash to participate when stocks get put on sale. And if you understand the themes behind them, you won’t get shaken out by a bad tape—you’ll use it to your advantage,” Cramer said. “It’s like kind of having a map when you’re engulfed in the fog of war.”
Cramer first suggested that Tesla, one of the “Magnificent Seven,” may see a fall from grace, saying CEO Elon Musk’s recent request to control 25% of the company was a “bad look.” He wondered whether other stocks would join the ranks of the “Magnificent Seven,” but conceded that any contenders will be involved with artificial intelligence.
To Cramer, health-care companies related to GLP-1 drugs — popular medications used for weight loss and to treat diabetes — will see huge gains. He suggested investors look into stocks involved in this space, highlighting Becton Dickinson, Abbott Labs, Regeneron, Amgen and Eli Lilly. Cramer also predicted more economic struggles or China over the course of the year. And according to him, mergers and acquisitions are poised to have a resurgence on the market.
“I’ll have a lot more themes as the year goes on, because I’m not constrained by the calendar,” he said. “It’s going to be a wild year where a lot of money will be made, even as some formerly beloved stocks do indeed bite the dust.”
