Jim Cramer on the set of Mad Money, August 18, 2022.
- There are a few key sectors that were robust in 2011's debt ceiling crisis and could be strong if we encounter another one this year, CNBC's Jim Cramer said.
- Consumer products, food, tech and drug names all have potential upside in the event of a debt crisis, he said.
Investors can look at the debt ceiling crisis of 2011 for guidance on where to invest as the nation contends with a similar stalemate and potential downturn, CNBC's Jim Cramer said Thursday.
"We can buy the stocks of literally any drug company," Cramer said. He pointed to Eli Lilly as one name that stands out, saying it is on the verge of one of its largest launches in a long time, a potentially revolutionary diabetes drug.
Consumer products stocks also offer opportunities, Cramer continued. "I'd be thinking of Procter & Gamble," he said, noting it held up during the 2011 debt downturn, and of Johnson & Johnson spinoff Kenvue.
Alongside those names, Cramer believes that PepsiCo is a "fabulous performer," and that Mondelez and Hershey both offer strength among the food names. A decline in costs thanks to the supply chain's reversion to normalcy and lower commodity prices is a boon for those companies, he said.
And even in the once-lackluster tech sector, the names that have "facilitated the internet's growth" will be stalwart just as they were in 2011, he said. Names like Nvidia, Microsoft, Alphabet and Meta will be strong contenders because "this time, it's worth looking at the ones that can help you mine big data for your own advantage," Cramer said.
Money Report
"Be careful," he said, "and use the parameters I've laid out."
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Disclaimer - The CNBC Investing Club Charitable Trust holds shares of Alphabet, Eli Lilly, Johnson & Johnson, Meta, Microsoft, Nvidia and Procter & Gamble.
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