There's always a bull market somewhere and I promise to find it just for you.
I start my Mad Money show that way for a reason, the reason is a day like today where even when we were looking down 500 Dow points, people find things to buy BECAUSE of the tariff tiff tweet that could lead to much higher duties on $200 billion in goods. They are currently set at 10%. They could go to 25% on Friday.
Of course our markets plummeted like that of China but a funny thing happened on the way to down to 5% to equal the loss on China's main index. Our markets dropped a percent after the smoke cleared and that's about all.
How is that possible? Because of my bull market thesis, that's how. The money leaves one area to find another. Sure some goes to the sidelines because the market is uncertain. But most of it tries to find a home somewhere safe.
So where did it go? First, it went to the domestics where there is faith. What does faith look like ? It looks like a mammoth insider buy: David Wichmann, the CEO of United Health (UNH) bought $4.64 million worth of stock in the open market. That's on top of another purchase by Frederick McNabb for $1.5 billion.
Last week you could not have gotten a bigger dog than United Health. All people could focus on is the prospect of a Democratic candidate taking the White House and changing our current system to one of single payer, which would decimate UNH's earnings.
But today it's about finding domestic companies doing well with real conviction. Hence United Health.
I would like to say that the buyer flocked to retail. However, there is a perception that retailers have too much stuff they have to buy from China to make it work.
You got a really good day for Alphabet (GOOGL) , maybe the first of many after a brutal evisceration. Perhaps investors are reassessing their negativity in light of how strong things really are and how they are not losing share to Amazon (AMZN) in advertising, It could be dawning on people that with $113 billion in cash it can pretty much buy whatever it wants to beef up its other bets, particularly health and the home. I think it has spent enough time in purgatory. Wouldn't it be great if Alphabet bought Square (SQ) to own the register of the small and medium size business that are spawned by the firm's remarkable but unsung efforts to train thousands upon thousands of people to code? Wouldn't it be astounding to learn exactly what they are doing with Google health? Or how they can dominate in voice if they just apply themselves. There's a lot there that needs to be explored and I would love to do so.
And then there's a stock that's down but not down enough to appease the bears. A stock that for so long was hostage to China but is now being talked about in a while different way: Apple (AAPL) . This weekend in the love fest that is the Berkshire Hathaway (BRK.A) (BRK.B) annual meeting, Tim Cook came to play. Buffett's the largest shareholder and there was a ton of friendship and gratefulness. What I thought that most stood out though, was the emphasis on Apple as a consumer company.
Becky Quick: "Warren, since he bought the stock and a lot of other people since then have also said the same thing that it's a consumer company not a technology company. How do you feel about that? Because I still think of you as a tech company, too."
Then Tim comes back with something that at one point would have been unthinkable: "We're in the tech industry But we work as the intersection of technology and the liberal arts and the humanities. And so we make products for people and so the consumer is at the center of what we do. And so I love the fact that he (Buffett) looks at us like that because we want consumers to look at us like that. We think technology should be in the background not the foreground. And that technology should empower people to do things and help them do things that they couldn't do otherwise."
This is stunning. I have argued for ages that Apple is the great consumer product of all time because it has tremendous technology and a sense of what people want with that technology. But unlike with any great consumer product there is an ecosystem of accouterments, from the watch to the airpods to the services that are ubiquitous and loved by the consumer. That love, which breeds insane customer satisfaction numbers, allows you to put a value on the ecosystem that makes a China tariff a speed bump and no more. I am so proud that Tim is embracing the consumer story because that allows, ultimately, for research coverage to switch to those who follow other consumer product companies. Can you imagine that the analysts who rave about Colgate (CL) with its flat to single digit growth got their hands on Apple. You think that Apple would still have a 17 multiple on this year's earnings and Colgate at 25 multiple? It just takes one major firm that doesn't' have an Apple analyst to have it picked up by the consumer packaged good companies to have it travel to much higher.
Now I know that Warren Buffett makes a great deal about how nobody knows anything about the market except a few select souls including himself. That's why he makes a big deal over the fact that it isn't worth timing things its just worth being optimistic because progress will win out. The issue I have is this: rich people only need to get rich once. They don't need to mess with the market if they don't want to. When I worked at Goldman Sachs I used to tell rich people, look, you already have a lot of money, what's the point of trying to make more with stocks? Why risk it?
Rich people always agreed with me. But how about the not so rich. How about the people who have to put money to work as part of their IRAs or their 401ks? They have been waiting for a big down day. They got it. Is it much to ask to help people who aren't rich try to get there or at least augment their paychecks by buying what they have researched with their own two eyes?
I don't think so. Days like today are when you break out your shopping list and buy domestic. They are the days that you can put money to work instead of staying on the sidelines. These are the days when if you're brave you get a good price and begin the ride to greater riches. It's happened before. It can happen again.
(UnitedHealth, Disney, Alphabet, Amazon and Apple are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells UNH, DIS, GOOGL, AMZN, AAPL? Learn more now.)