Cramer's Morning Take: Interest Rates 12/14/23

SPEAKER_1 (0:00)

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Jim Cramer (0:31)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. We are in a moment, Jeff, where I literally think everything that is bad is rallying because now anybody who needs financing at Warner Brothers Discovery, Ford if they wanted to finance, will be able to do it.

And we have some stocks that play into this hand, rather well.

Jeff Marks (0:55)

No, they're finally coming to life now that the Fed has kind of had this dovish pivot, surprising a lot of people with their Dow plot projections, penciling in three cuts next year. We'll see how early some of those come. But I think it all goes back to what happened in mid-November when we got the October CPI. It was flat. That was the first indication that the Fed was done raising rates. And we've seen a lot of stocks move since then. On that morning meeting that day, I remember we talked about housing plays, the Stanley, Black & Decker, the bank stocks, Wells, Morgan Stanley, all benefiting from this environment. And those are the top winners today.

Jim Cramer (1:33)

This is what diversification is meant for, okay? Let's say we only own the bag 7

Well, it would be a bad day. Yes.

Jeff Marks (1:40)

And we've trimmed some of those, too.

Jim Cramer (1:44)

But you look at a Wells Fargo, and Wells sells it 12 times a day.

It's got a higher multiple. Morgan Stanley is like 14 But wow. I mean, this thing was here in 2018, okay? So still not gotten to where it was in 2018, and yet it's a much better bag. Would I feel like you should buy it up here? I'm actually going to say that I think there could be a pullback at the end of the day, and then maybe.

Jeff Marks (2:11)

No, interesting. And you're seeing a big move, too, as well as in Morgan Stanley.

Jim Cramer (2:16)

Do we have to try Morgan Stanley? Because it's rather incredible.

Jeff Marks (2:19)

And let's remember what James Gorman has been saying all year in that as soon as the Fed indicates that it's done raising rates, maybe even cutting rates, you're going to see a huge influx back to M&As again, the IPO market thawing out. And we're seeing that play out in the stock of Morgan Stanley today, as people have been trying to get ahead of that.

And that's why, you know, that was been our thesis the whole time and has a huge dividend yield. That's why we bought some when it got hammered last quarter in the seventies. So nice move in the bank today.

Jim Cramer (2:51)

Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning meetings every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

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