Cramer Remix: An amazing stock not done rallying

Cramer Remix: An amazing stock not done rallying



Here is a very good article about Jim Cramer's views on various parts of the stock market.  He believes in playing it safe as well as going for home run stocks.  For example, Jim has always recommended that your first $10,000 investment should be in a broad market fund like the S&P 500.  I also like Vanguard's total market fund VTI.  In this way, a good portion of your money will be protected through automatic diversity rather than being devastated by a bad single stock pick.



Secondly, I believe a person should have ten percent invested in a broad bond fund.  Naturally, it will be disappointing sometimes when the general market handily beats the bond fund, but you will sleep better at night knowing that your bond fund is not subjected to the same volatility and huge bear market drops that occur with stocks.  I like Vanguard's BND fund for maximum stability, and I like PFN and DHY for higher yields while being invested in bonds.



Thirdly, I agree 100% with Cramer that the hottest stock in the market right now is Ambarella (AMBA).  I own the stock, and I plan to buy more.  They make the chips which go in GoPro cameras as well as chips for competitor companies.  Now, the camera industry is involved with drones as well as traditional uses.  The sky is the limit for AMBA, and a person should have up to forty percent of his or her portfolio in hot individual stocks.  This is also what makes the stock market so interesting if you are able to pick the right stocks. 



Fourth, utility stocks were also discussed in the article.  These are often picked for a higher dividend than low-paying bonds, but you can lose money on your principal amount if you are in utility stocks at the wrong time.  The article suggests that you should buy utility stocks after the Federal Reserve has started raising interest rates.