If there are stocks in your portfolio you're not happy with, now's the time to sell, Jim Cramer cautioned his Mad Money viewers Tuesday, after Federal Reserve Gov. Lael Brainard slapped investors with harsh comments that riled the markets.
Brainard is widely known as one of the most "dovish" Fed governors, one that favors low interest rates and increased growth. She was one of the loudest voices last year proclaiming that inflation was only transitory and would be headed lower.
But today, Brainard hummed a different tune, making statements that said it's of "paramount importance" to get inflation under control. She said the Fed is "prepared to take strong action" that includes "rapidly" reducing the size of its balance sheet as early as next month's meeting.
These comments sent the markets tumbling, because by all measures, our economy is already slowly and aggressive action may be the last thing we need. Mortgage rates just hit 5%, with mortgage applications falling off a cliff. Auto sales are weaker and Baltic freight prices are also tumbling. Retailers like RH (RH) have already warned high-end consumers are pulling back.
That's why Cramer encouraged viewers to lighten up on their biggest winners and start raising cash. He was still bullish on healthcare and oil, as those sectors are likely to flourish no matter where we are in the economic cycle. For everything else however, it's time to start getting cautious.
Driving Toward Energy Independence
With the realization that buying Russian oil and gas is paramount to bankrolling crimes against humanity, the Western world is finally stepping up toward clean energy and energy independence. That means the U.S. needs to supply Europe with every drop of liquified natural gas it can.
There are only two LNG export companies in the U.S., both started by the same man, Charif Souki, who appeared on Mad Money just last week. Souki founded Cheniere Energy LNG, which has two export facilities in operation. After years of losing money, Cheniere is now profitable and is already supplying Europe with the energy it needs.
Souki's newest company, Tellurian (TELL), aims to be just as good, or better, than Cheniere, although the company has only just begun construction of its first export terminal, which is slated to begin deliveries in 2026.
Cramer recommended both of these stocks, along with Sempra Energy (SRE), which boasts a robust network of natural gas pipeline infrastructure and a small export facility. Sempra is a growth utility with great management and the bonus of LNG export capabilities.
Rental Inflation
Inflation isn't just running rampant in the grocery store and at the gas pump, it's also hitting hard for anyone renting an apartment. The average rent for an apartment is up double digits, with the average two-bedroom apartment rent rising 14% over the past year.
There is a way to benefit from rising rents however, and that's by owning an apartment real estate investment trust, or REIT. There are 17 publicly traded apartment REITs and Cramer evaluated them all to find the four best ones to own.
Independence Realty Trust (IRT), American Campus Communities (ACC), AvalonBay Communities (AVB) and Camden Property Trust (CPT) all made Cramer's buy list, both for their stellar growth rates and their dividend payouts.
Executive Decision: Uber Freight
In his first "Executive Decision" segment, Cramer spoke with Lior Ron, Head of Uber Freight, the trucking and logistics arm of Uber (UBER).
Ron said there's been some good news in the trucking industry. Over the past month, spot rates have fallen 20% from their highs. Rates are still well above their pre-pandemic levels, but any relief is a welcome sign.
There are many factors working to pull freight prices back to Earth. First, consumers are starting to shift away from buying products and back to buying more services. This has allowed inventories to rise. Additionally, the freight industry is seeing more drivers enter the market and with semiconductors slowing becoming more readily available, more trucks are also entering the market.
Uber Freight now has 1.5 million drivers on its platform, Ron said, and the company is on track to assist with $18 billion worth of freight this year.
When asked about autonomous vehicles, Ron explained that driverless trucks are still a long way away and even when they do arrive, they will take long-haul routes that truckers don't want so human drivers can deliver more local routes and stay closer to their families.
Lightning Round
In the Lightning Round, Cramer was all bulls, recommending Cognizant Technology (CTSH), NOV (NOV), Fisker (FSR) and United Airlines (UAL).
Tesla and Twitter
In his "No Huddle Offense" segment, Cramer pondered what Tesla (TSLA) CEO Elon Musk really has in mind for Twitter (TWTR). Musk was awarded a seat on Twitter's board of directors this week after announcing he has taken a 9.6% stake in his favorite social network.
Musk likely didn't get a seat on the board to attend boring meetings, Cramer quipped. Instead, Musk is likely going to advocate for the changes Twitter users have been asking for for years. Cramer himself has advocated that Twitter create a premium paid tier where users are not allowed to remain anonymous. But what Musk's true plans are, no one knows.
To sign up for TheStreet's free Daily Booyah! newsletter with all of the latest articles and videos please click here.
