3 takeaways from our daily meeting: Bonds vs. stocks, oil’s plunge, a small buy in tough market

Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Friday’s key moments. Bonds vs. stocks Energy stocks Constellation buy 1. Bonds vs. stocks The Dow plummeted Friday, below its 2022 closing low in mid-June, battered in part by rising bond yields. The 2-year Treasury yield continued to climb to more than 4%, reaching new 15-year highs in the wake of the Federal Reserve’s move to further raise interest rates by another 75 basis points this week. Yields are becoming more appealing to investors, as bond prices and yields have an inverse relationship. “We’re not going to pay as much for earnings,” Jim Cramer said Friday. With inflation and competition from the 2-year, Jim added that it’s “unfathomable to think you can buy stock here and make money when you have such a great alternative.” 2. Energy stocks Oil prices on Friday tumbled to eight-month lows, with WTI crude down 6%, at $78.45 a barrel. At this level, we know it generally becomes more difficult for oil companies to continue to return significant capital to shareholders. But Jim said he’s still looking at energy companies like Club holdings Pioneer Natural Resources (PXD), Devon Energy (DVN) and Coterra Energy Inc (CTRA). Our portfolio remains overweight on energy stocks — and if the share prices of any of those three come down even more substantially, we could possibly buy up more. Those energy holdings all have breakeven levels below $80-per-barrel WTI and could still generate high returns on investment. 3. Constellation buy Jim answered a question from a Club member, Mario, on Friday about what professional money managers should do in this tough market. Jim said that pros “watch and nibble” and “watch and nibble.” While the S & P Oscillator continues to show the market is oversold, we are sticking to quality stocks and looking for buying opportunities. “We’re not going to run away from this market,” Jim said. That’s why we are making a small buy into Friday’s selloff , adding 20 more shares of Constellation Brands (STZ). We like STZ for the recession-resistant qualities of its unique Mexican beer portfolio of Corona, Modelo and Pacifico. Also in tough economic times, people do still tend to drink alcohol. (Jim Cramer’s Charitable Trust is long PXD, DVN, CTRA and STZ. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.