Nothing Works The Same Way Forever – Why Jim Cramer Says You Must Always Be Ready And Willing To Adjust Your Trading Strategy

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A wise man once said, “Change is the only constant in life.” Although it may sound counterintuitive, almost anyone who has made it to old age will tell you it’s true. CNBC’s investment guru Jim Cramer believes this paradox also applies to investing. During a recent appearance on his show, “Mad Money,” Cramer discussed the importance of having a flexible investment strategy that adapts to current market conditions.

Cramer, who has earned a reputation for being an incredibly savvy trader, dedicated a segment of Mad Money to explaining his advice to stay away from alcohol stocks in 2024. He began by saying, “Pretty much all year, I’ve told you to stay away from the alcohol stocks because they’ve been awful. The younger people seem to have an aversion to drinking, in part because recreational cannabis has been legalized in nearly half the country.”

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He offered another explanation for slumping alcohol stocks when he noted, “At the same time, those GLP-1 weight loss drugs reduce craving for everything, including booze.” Cramer described other headwinds, such as consumer resistance to high prices, that have not just stunted the growth of alcohol stocks but pushed them downward.

He noted that alcohol giant Diageo’s stock is down 24% and legacy brand Johnnie Walker has also experienced a 15% decline in share prices. Neither of those are good numbers and Cramer conceded they look even worse when compared to the S&P 500, which he said was “up 28% over the same time frame.” By this point, Cramer had made a solid case for why he avoided alcohol stocks.

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Based on the data he cited, it appeared Cramer would extend his “no alcohol stock” advice for 2025. Then he threw everyone a curveball by saying, “No investment thesis stays true forever. You can’t take your ideas for granted, even if it seems like you’ve tapped into a long-term story. That’s why I always tell you (that) you need to do the homework if you’re going to own individual stocks.”

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