Cramer: Diversify Beyond AI Stocks Before Midterms — SkimNews
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- Jim Cramer told investors they are too concentrated in AI infrastructure stocks and should look elsewhere before the November midterm elections, warning AI buildout names will remain volatile at least until then.
- GE Aerospace announced Tuesday it will spend nearly $12 billion to acquire aerospace castings supplier Consolidated Precision Products, a deal Cramer said could strengthen its engine production and benefit customer Boeing.
- Robinhood and Affirm were Cramer's fintech picks — he highlighted Robinhood's grip on younger customers and Affirm's 28 million active customers and partnerships with Amazon, Costco, Walmart, and Apple.
- Medtronic has reported stronger-than-expected results and improved organic growth that Cramer said 'crazy'-ly failed to lift the stock, which remains near where it was when it last reported.
- Enbridge and Enterprise Products Partners offer dividend yields above 5% and stand to benefit from changing energy flows tied to Strait of Hormuz disruptions, according to Cramer.
- Amgen fell 10% Tuesday after competitor Novartis's cholesterol drug failed a late-stage cardiovascular trial, but Cramer argued Amgen's competing candidate differs enough that much of the risk may already be priced in.
Why it matters: Cramer is steering retail Investing Club followers toward specific, concrete trades — a $12B GE Aerospace deal, Affirm's 28M-user base, Medtronic's stagnant stock despite strong results, Enbridge's 5%+ yield tied to Hormuz disruption, and Amgen's sympathy-driven 10% drop — offering quantified alternatives to the crowded AI trade with a defined catalyst window (the November midterms).
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