Sitting on gains of 1,200% — it would have been irresponsible not to take some profits
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. 1. Day 2 of the new trading year and it’s a tough morning once again. So far, however, the Nasdaq was only losing about half of Tuesday’s 1.6% decline. Apple was down 1%, one day after losing more than 3.5%. Jim Cramer said that, unlike Tuesday’s pullback, he’d call Wednesday’s early action a “constructive decline.” Higher bond yields, with the 10-year Treasury back above 4%, were a headwind. Wednesday. Oil was up 3% and natural gas was up 4%. 2. Here’s more context around Tuesday’s small trims of eight stocks that were huge Club winners in 2023. Apple was one of them. So was Nvidia . Jim said a triple for Nvidia last year, which pushed paper gains on shares bought in 2019 to nearly 1,230%, compelled us to take profits. “Discipline is king,” Jim said, adding it would have been “irresponsible” not to take profits. He reiterated that he still loves Nvidia, Apple, and the six others long-term. You can’t only sell losers. 3. Health care was off to a strong 2024 after a disappointing 2023. Of course, Club name Eli Lilly bucked the sector trend last year with a gain of around 60%, thanks to the rise of GLP-1 anti-obesity drugs. The stock gained 1.5% on Tuesday and another 3% on Wednesday. In a new note, Bank of America cited two upcoming catalysts to watch for Lilly in the first quarter: data on tirzepatide which could expand the total addressable market for GLP-1s and FDA approval for Lilly’s Alzheimer’s drug donanemab. (Jim Cramer’s Charitable Trust is long AAPL, NVDA, LLY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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