Jim Cramer says not all stocks are struggling to start 2022

CNBC’s Jim Cramer stated Wednesday he believes it’s attainable for buyers to construct a profitable portfolio regardless of Wall Avenue’s powerful begin to 2022.

“Actual corporations doing actual issues with super model loyalty are what’s going to triumph on this setting— you simply must know the place to look,” the “Mad Cash” host stated, after the tech-heavy Nasdaq Composite closed Wednesday’s session in correction territory, that means it’s down greater than 10% from its most up-to-date excessive, which was recorded in November.

The S&P 500 fell practically 1% Wednesday, placing its year-to-date decline at 4.9%. The blue-chip Dow Jones Industrial Common additionally slid nearly 1%, bringing its losses to three.6% to date in 2022.

Whereas Cramer stated there are actual headwinds resembling inflation worries which might be weighing on the inventory market, buyers must look previous the large image and deal with the traits of profitable corporations.

“It’s not the damaged provide chain, it’s who can overcome the damaged provide chain,” Cramer stated. “It’s not the bounce in uncooked prices, it’s who has the manufacturers that permit them to go these prices onto the purchasers. It’s not the inevitable charge hikes from the Fed, it’s who can thrive in the next rate of interest setting.”

For instance, Cramer pointed to Procter & Gamble as one instance. The patron merchandise large noticed its inventory rise 3.36% Wednesday after it reported better-than-expected second-quarter outcomes.

“Although it had $2.8 billion in commodity, freight and forex headwinds, it may go these prices onto you, the client, with out batting an eyelash, as a result of not all manufacturers are created equal. Procter’s are created higher,” he stated.

Financial institution of America, which beat quarterly revenue estimates Wednesday morning, is one other instance of the type of firm buyers ought to contemplate proudly owning on this present setting, Cramer stated. “That is an establishment that thrives off charge hikes. So, after we see the numbers it reported right now, I feel it deserved to rally much more than it did, frankly, as a result of 2022 could possibly be the yr of Financial institution of America.”

Join now for the CNBC Investing Membership to comply with Jim Cramer’s each transfer available in the market.