Stock In Focus: FedEx & the CNBC Investing Club

Greetings My Investing Family!

This morning, I decided to spend some time thinking about my stocks.

I am a member of the CNBC Investment Club.

The investing club is run by Jim Cramer and Jeff Marks . You may be familiar with Jim Cramer from the television show called “Mad Money with Jim Cramer.”

I had been a follower of the Mad Money show for quite a while, when they launched the investment club for a free introductory period, which I believe was during the second half of 2021. Since, I like Jim, I signed up. Almost every weekday morning, at 10:20 EST, there is a live morning meeting, in which the team talks about what’s going on in the overall stock market, and how it applies to some of the stock in the club’s portfolio. The meeting lasts for 10 minutes.

The portfolio of the club consist of stocks in Jim Cramer’s charitable trust. It hold’s approximately 33 stocks, and the dividends and other cash distributions are donated to charity.

Starting in January 2022, a paid subscription was required to be a club member. After following the investment club during the free introductory period, I decided to join when it became a paying club because, not only do I like Jim Cramer and Jeff Marks, I hold some of the same stocks in my portfolio as the ones in the charitable trust portfolio.

I also like that the portfolio is held to benefit charity.

Since, I had some free time, I decided to watch this morning’s club meeting. After the meeting, I received a follow-up email from the club.

For each club meeting that watch, I try to have at least one take-away …sort of a “news that I can use” as I grow my investing knowledge.

Today’s takeaway is as follows:

I should pay attention to bellwether stock.

What is a bellwether?

A bellwether is an indicator or predictor.

What is a bellwether stock?

A bellwether stock is one that acts as a lead indicator predicting a broader economic trend.

What are some examples of bellwether stock?

For example, transportation stocks are often seen as bellwethers for the economy.

So, railroad stocks like Union Pacific, and package delivery services like UPS are considered bellwether stocks. Therefore, FedEx, another package delivery stock, is also a bellwether for the economy.

According to the CNBC Investment Club today, Raj Subramaniam, the CEO of FedEx, said that he expects the economy to get worse.

In fact, he reportedly told Jim Cramer that he believes a recession is impending for the global economy. A little later, after the initial email from Jim, I saw a CNBC headline that read, “Dow drops 300 points as traders fret over FedEx warning, Wall Street heads for big weekly loss.” The DOW transportation Average is down 5.71%, at the time that I am writing this.

So, what am I planning on doing with this news?

First, and most importantly, I will not panic. I will not start selling my stock, particularly not at a loss. I know that the stock market has it’s ups and down, and that it has a history of coming back. Second, I plan on allowing my dividends to start building up into cash, rather than having automatic reinvesting. Lastly, I plan to keep my an eye out for opportunities to average down on any of my stocks that are considered in a recession-resistant category.

Do you have a plan for stock during a recession? Do you own any FedEx stock? Start a new position? If yes, what stock(s)? Sell?

I’d love to hear of your plan for stocks in a recession.

Let me know in the comments.

As Always, I am Wishing You Much Success,

Rich Mom

Would you like to learn more? Check out some of my other posts:

Why Should I Invest?

Ten Secrets to Building Wealth

Stock in Focus: Pioneer Natural Resources

Stock in Focus: FedEx & About The CNBC Investment Club

If you are interested in learning about the CNBC Investing Club, here is a link to CNBC. There is a link near the top of the page to find information about the club. FYI: If you join, I do not earn anything.

I am just sharing this for your information, since I like the club.

If you would like to start investing with a free Robinhood account with this link: Robinhood

If you do use my link to sign up for your Robinhood account, you will get free stocks, and at no extra cost to you, I will receive a small payment. I will use this toward covering the cost of this blog. Thank you!

Also, if you do open a Robinhood account, I’d love to know what stock that you get. You can let me know in the comments. 

Who is Rich Mom? 

If you are wondering who Rich Mom is, check out my “About Rich Mom” page. 

Please note: I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor. 

The information shared here is not intended as financial advice, just entertainment and encouragement.