The first half of 2025 has been an intense year for investors, to put it mildly.
With the introduction of President Donald Trump’s tariffs on April 2, the stock market plummeted as businesses and investors alike considered the potential effect the levies would have – and that many businesses could be devastated by them.
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Specific tariffs, such as Trump’s original 145% levy on China, would have an enormous negative impact on countless companies across a variety of sectors, including tech, retail, automotive, and more.
Trump’s announcement on April 9 of a 90-day pause on reciprocal tariffs was the first of many signals that perhaps the potential economic disaster might be avoided. Since then, the president has flip-flopped on many of his original promises, leading investors to hope that perhaps things would turn out okay after all.
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And that trend continues in May, as the U.S. stock market has returned more than 6%. Despite gaining momentum, however, the climate is still uncertain, leaving many investors unsure if they should keep their holdings or make moves.
CNBC’s Jim Cramer weighed in on that very topic this past week with some good advice for those who are skeptical about how to proceed in the light of the trade war.
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Jim Cramer’s tips for stocks to watch
On a recent episode of “Mad Money,” Cramer shared an essential tip for those who are worried about their portfolios.
“You can learn a lot about a market from looking at the stocks that make it to the 52-week high list,” he said. “It’s a rarefied group by nature, and it speaks loudly about what works and, of course, what doesn’t,” he said.
Cramer is referring to a list of stocks that have hit 52-week highs, indicating their ability to persevere even through severe headwinds.
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A few of the current companies on the list include semiconductor maker Broadcom, hard drive maker Seagate, cooling systems company Johnson Controls, media streaming services Netflix and Spotify, and uniform maker Cintas.
A few more of the companies on the list that may be worth checking out are DoorDash, eBay, Roblox, GE Aerospace and Mosaic.
“At the end of the day, this new high list is an eclectic group of stocks, mostly geared to U.S. venues. That makes sense, given the trade war,” Cramer said. “I’d be a buyer of any of these names down 5 to 8% from these levels. That is my favorite percentage to start a position on a red hot stock, and not before then.”
How to use Jim Cramer’s 52-week high list well
While the list is a handy way to keep an eye on stocks performing over the long term, Cramer doesn’t translate that to an instant buy just because something stays on the list.
“The best way to target stocks on the list is to be patient and find a high-quality stock that is seeing a temporary pullback,” Cramer said.
However, he did stress that the list is an incredible tool to monitor the market.
“Poring over the ‘new high’ list is a fabulous way to identify potential, and I stress that word, potential stocks to buy,” Cramer said. “You only buy stocks that have pulled back from the ‘new high’ list if you’re confident they’ll make a comeback for substantive reasons unrelated to the broader market.”
Related: Jim Cramer sends a blunt message on Microsoft layoffs
