Making sense of the market this week, November 7
You can make up your own mind, and we’ll keep score of Cramer’s prediction of “5 borderline unstoppable themes for the remainder of 2021.” Here they are:
- The future of automobiles
- Environment (green energy)
- Metaverse (the digital device world)
- The Cloud
- Oil and gas
I can’t say I disagree with the prioritizing of these five things, and those investment themes have certainly been explored in my column. I would agree with what I see as these “undeniable trends.” This isn’t rocket surgery (this malaphor is very intentional). These trends are all unfolding in obvious fashion right before our eyes.
These are more than just themes for the remainder of the year. They might be seen as long-term trends, especially number 1 through number 4. And, if you see them as long-term trends, then you might embrace each one with patience for returns over the coming decade or more—not the next two months.
Technology and the environment affect and shape this entire list. Readers will know that I’m a big fan of the oil and gas sector for my investments. And, yes, I am also a big fan of the planet: The two are not mutually exclusive. As an investor, I embrace the energy reality.
All said, we know there will be a more meaningful green energy shift in the future, and the oil and gas theme is likely to have an expiry date. At least I hope so, for the sake of the planet.
This is a good post from CNBC. And Cramer offers ideas on how to gain exposure to those themes. You’ll find many ETFs make these themes accessible to you. In Canada you might look to Evolve ETFs, Horizons and Harvest Portfolios Group to name a few.
Jonathan Chevreau, MoneySense’s investing editor-at-large, looked at Cramer’s COVID-themed stay-at-home portfolio. From my observations, the portfolio idea did quite well. It was a timely call on a structural shift on how we spent money during the early stages of the pandemic.
Fun with FAANG and acronyms
Cramer is also the creator of the famed FANG/FAANG acronym. And he’s suggesting to evolve the moniker to MAMAA, with each of those letters standing for Meta, Apple, Microsoft, Amazon and Alphabet (Google). Not to be outdone, Motley Fool analyst Bill Mann is suggesting MANAMANA, which adds Adobe and Nvidia to the usual list.