Don’t panic, and start working on your buy list

Steven Spielberg

Jim Cramer

Scott Mlyn | CNBC

(This article was sent first to members of the CNBC Investing Club with Jim Cramer. To get the real-time updates in your inbox, subscribe here.)

Markets are selling off sharply Friday on news of a heavily mutated COVID-19 variant detected in South Africa that could put the global recovery at risk, and like everyone else right now we don’t know enough about the new variant.

Given the economic uncertainty and the potential for travel restrictions, today’s decline makes for a good time to brush off the list of companies who did well in the height of the pandemic last year.

Possible buy list — essential retail

Possible buy list — testing and treatment

Don’t play the stay-at-home game anymore

One quick point we want to distinguish about this list is that these investments are not solely based on COVID-19 plays. We are past the point of playing the stay-at-home game. Instead, we highlighted a group of stocks that will see a positive impact from a return to pandemic behavior.

Beyond the pandemic, this list contains market share winners, companies with attractive growth and pipeline opportunities, and favorable company-specific initiatives.

Put simply, we like these stocks with or without Covid.

Possible buy list — strong balance sheets

What we are staying away from

Bottom line

The bottom line is that we want to urge Investing Club members not to panic off the headlines and look for opportunities as stocks come in. But even though the market has gone on sale, we don’t think it’s a hold-your-nose-and-buy-what’s-getting-hit-the-hardest type of day because we do not know enough about the transmissibility of the new variant and how much it has already spread.  If we learn something negative over the weekend, we may see better prices Monday.

The CNBC Investing Club is now the official home to my Charitable Trust. It’s the place where you can see every move we make for the portfolio and get my market insight before anyone else. The Charitable Trust and my writings are no longer affiliated with Action Alerts Plus in any way.

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Typically, Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If the trade alert is sent pre-market, Jim waits 5 minutes after the market opens before executing the trade. If the trade alert is issued with less than 45 minutes in the trading day, Jim executes the trade 5 minutes before the market closes. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. See here for the investing disclaimer.

 (Jim Cramer’s Charitable Trust is long AMZN, COST, WMT, UPS, ABT, MS, WFC, BA, WYNN, DIS.)

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