Right now, the market hinges on a stimulus deal coming from Washington. MSNBC’s Jim Cramer believes that the deal will come eventually, but for the time being, investors should stick with the bull markets that are currently working.
Automobiles, home improvement and renovations, hygiene, digitization and the cloud, and the transition to 5G wireless. Cramer stated that these bull markets are not dependent on a stimulus plan and will continue to operate as normal.
When bull markets sell off and stocks are on sale, this gives investors the opportunity to get into these markets at even better prices.
Focus your attention on Plug Power
With headquarters in New York, Plug Power Inc is in the business of designing and manufacturing hydrogen fuel cell systems. These fuel cell systems replace conventional batteries in electric vehicles and equipment.
Plug Power has over 35,000 of its fuel cell powered forklifts currently being utilized by Amazon, Walmart, and Home Depot. Currently, they are the largest user of liquid hydrogen in the U.S.
Over the past three months, their shares are up 69%, despite being down 4% on monday.
Jim Cramer recently spoke with Andy Marsh, president and CEO of Plug Power. Marsh stated that sustainability goals of companies nationwide are driving demand, not Washington. With the increased pressure on Washington to pass pro-renewable policies, Marsh is certain that this would lead to the acceleration of demand.
When confronted by Cramer about competition from China, Marsh said that he’s not afraid. He said that because Plug Power has obtained such a massive lead in the manufacturing of these fuel cells, it will be very difficult for china to catch up.
Keep an eye on American Electric Power
Investor-owned electric utility company, American Electric Power, is delivering electricity to more than five million customers across 11 states.
American Electric Power has a 3.1% yield and, despite being a down day, shares still rose 1.8%.
Cramer spoke with Nick Akins, CEO of American Electric Power, who stated that they will continue to focus their attention on the changing needs of the US economy.
Since the beginning of COVID-19, Akins explained that the demand for commercial and industrial power demand has decreased, while residential power has increased as we begin to see more people working from home.
As the year ends, Akins expects both of the trends to equalize and the overall demand for power to increase.
When questioned about the upcoming 2020 election and how it will affect their planning, Akins explained the customers and shareholders alike expect a clean energy utility. He said potential changes in Washington may affect how fast they move, but their plans will be to always support a clean energy economy.
Our Take: Grab the bull by its horns.
There’s no denying that it’s going to be a rocky week for the stock market. Instead of panicking, it’s time to take a look at the markets that were just put on sale and to buy into them.