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Cramer Remix: Don't own this entire sector, just the best of breed

www.cnbc.com
Date:
Friday, Sep 7, 2018

When CNBC's Jim Cramer heard from a caller weighing the pros and cons of investing in Home Depot, Lowe's and Floor & Decor, he wondered why things needed to be so confusing.

"Why do we overcomplicate things? We've got Home Depot. We've got a new manager who's real good at Lowe's and we've got Floor & Decor. What, are we going to own them all?" the "Mad Money" host asked on Friday.

Instead of trying to balance owning shares in all three home improvement retailers, Cramer recommended going for the best of breed players.

"Home Depot, at $190, I said was unbelievable. And you know what? I'm reiterating Home Depot and I have to tell you, if Lowe's comes down, [it's] probably worth buying, too," he said. "But don't buy them all."

Cramer's game plan: Get ready for a sell-off

Nicholas Kamm | AFP | Getty Images President Donald Trump speaks to the press aboard Air Force One on September 7, 2018, as he travels to Fargo, North Dakota, to speak at a Joint Fundraising Committee.  

Cramer couldn't resist patting himself on the back for his prediction that if Friday's job results were strong, they would embolden President Donald Trump to intensify his administration's trade war with China.

Sure enough, the better than expected jobs report was followed by another warning from Trump to China. The president told reporters Friday that he was "ready" to place tariffs on another $267 billion worth of Chinese goods on top of the $200 billion worth of goods already under scrutiny.

Andrew Harrer | Bloomberg | Getty Images Douglas ' Doug ' Peterson, president and chief executive officer of S & P Global Inc., speaks during a panel discussion at the Bipartisan Policy Center in Washington, D.C., U.S., on Monday, May 16, 2016.   John Chiala | CNBC Patrick T. Fallon | Bloomberg | Getty Images Benjamin ' Ben ' Kovler, chairman of Green Thumb Industries LLC