Jan 15, 2026 · 44 min
Cramer turns cautious as banks and growth stocks lose momentum
Mad Money w/ Jim Cramer 1/14/26
The episode tests whether falling bank and software shares signal a broader economic shift or a chance to buy selectively.
- 1Political and economic risks are weakening the bullish case for banks, retail, travel, and other discretionary sectors.
- 2Cramer sees opportunity in AutoZone and reinvented technology companies while warning against chasing overheated copper or software declines.
- 3Biohaven’s pipeline targets difficult neurological, immunological, and obesity-related conditions with therapies designed to improve tolerability.
Don't miss
Cramer explains why the charitable trust partially sold Wells Fargo despite his confidence in the bank’s CEO and long-term prospects.
The brief
Cramer opens with a market thesis turning bearish: political pressure, economic uncertainty, and high expectations are weighing on banks and discretionary companies.
The stock debate is selective rather than uniformly defensive: copper looks overheated, AutoZone could recover with earnings, and reinvented legacy technology may outlast fading software enthusiasm.
Biohaven CEO Vlad Schwarz outlines programs in tinnitus, obesity, precision immunology, and epilepsy, including treatments aimed at difficult diseases and fewer side effects.
The standout tension arrives with Wells Fargo: Cramer explains why the charitable trust sold part of a long-held position despite confidence in CEO Charlie Scharf.
Across the episode, Cramer argues for thesis-driven discipline—separating genuine opportunity from falling prices that merely look cheap.
What was said on this episode
35 statements · 18 positive · 12 negative · 3 mixed · 2 neutral
Bank strength signals expanding businesses, capital raising, M&A, and consumer borrowing
“When the banks are winning, it tells you businesses are expanding, need loans, companies are coming public to raise capital, we have mergers and acquisitions galore, and individuals are taking out loans”
Listen at 1:39
A 10% credit-card rate cap would sharply reduce consumer eligibility
“If you cap credit card rates at 10%, then most people simply won't qualify for credit cards.”
Listen at 3:02
A 10% credit-card cap would cause severe economic damage
“And that is a recipe for economic disaster.”
Listen at 3:27
A credit-card rate cap would hurt retail, travel, and discretionary sectors
“it'll also be really bad for retail and traveling, a host of other discretionary products.”
Listen at 3:53
The proposed credit-card rate cap is unlikely to be enacted
“I think this policy is unlikely”
Listen at 4:19
Interfering with credit-card markets would cause the economy to collapse
“if you tamper the credit card market, I got to tell you, you're ensuring that the economy goes bust.”
Listen at 4:55
Johnson & Johnson can perform well during economic weakness
“J&J can thrive in a weak economy.”
Listen at 5:25
Consumer staples and oil leadership will not persist
“The bottom line, we have to hope that these two new leadership groups aren't long-lasting. I don't think they will be.”
Listen at 7:36
Southern Copper has risen too far for a new purchase
“I think you're late. I can't condone it.”
Listen at 8:37
AutoZone’s next quarter should improve, making the stock buyable
“I think the next quarter is going to be better. This company always pivots and always pivots well. I'd be a buyer.”
Listen at 9:23
JPMorgan stock should recover after its decline
“I think JP Morgan's stock will be fine.”
Listen at 12:43
Wells Fargo remains attractive long term but has further downside first
“I still believe in Wells Fargo longer term. But the stock has to finish going down, and I don't think it is yet.”
Listen at 14:12
Citigroup is undervalued and his preferred bank purchase, alongside Bank of America
“I think it's just too cheap to ignore. It's probably the first one I would buy of the ones I just mentioned. Bank of America, too.”
Listen at 17:27
Major bank stocks can continue rising if the economy avoids deterioration
“these stocks can keep working this year as long as the economy doesn't deteriorate from here.”
Listen at 17:53
Bank stocks may experience further pain for one to ten days
“I expect some pain for the next at least week, maybe 10 days.”
Listen at 18:09
IBM remains buyable despite its recent rally
“Not too late to buy IBM.”
Listen at 21:10
Investors should buy Cisco now
“I think you buy Cisco right here.”
Listen at 25:02
ServiceNow has not yet established a reliable bottom
“I am not going to call a bottom of ServiceNow.”
Listen at 27:36
Legacy technology stocks may outperform or regain prominence in 2026
“I suggest that 2026 could be the year that legacy tech... I'm talking IBM, Cisco, my favorite, and Intel, make a new name for themselves.”
Listen at 27:43
Tinnitus affects up to 50 million Americans and lacks approved drug therapy
“tinnitus affects up to 50 million Americans, and there's no approved drug therapy”
Listen at 29:57
Biohaven’s T-alpha reduces fat while increasing skeletal muscle mass
“it directly... reduces fat, but importantly, it increases skeletal muscle mass.”
Listen at 31:32
Biohaven’s T-alpha obesity trial will report results in 2026
“We already initiated an important phase three trial in obesity. It's reading out this year.”
Listen at 31:40
Biohaven’s focused obesity and immunology investments may benefit patients and investors
“we think there's going to be upside for patients and investors.”
Listen at 32:03
Biohaven’s degrader technology selectively removes disease-causing blood pathogens
“we're able to target disease-causing pathogens in your blood and degrade them and not touch anything else.”
Listen at 32:18
Biohaven’s degrader may substantially improve treatment for IgA nephropathy
“we think this is going to be a game changer for people suffering from IgA nymphopathy.”
Listen at 32:58
Biohaven is pursuing additional autoimmune disease indications
“there's a number of other autoimmune diseases that we're going after”
Listen at 33:17
Biohaven believes it can compete successfully against larger drug companies
“We think we can do it again.”
Listen at 33:53
Biohaven’s KV7 activators may treat epilepsy with fewer side effects
“we can treat epilepsy without the burden of all the side effects.”
Listen at 35:43
Babcock & Wilcox is a speculative power-plant construction opportunity; wait for a pullback
“it is a great spec on the construction of power plants. Let's wait till it goes down a little bit. And then pull the trigger.”
Listen at 38:17
Mountain is an unattractive stock
“This stock is just awful.”
Listen at 38:48
Mountain will continue declining without earnings per share
“it is going lower without earnings per share.”
Listen at 38:57
Charlie Scharf can transform Wells Fargo into a higher-valued hybrid bank
“I still believe Charlie Sharpe knows how to transform what's basically a consumer bank into an investment bank with a consumer bent.”
Listen at 40:39
Investors should trade around core positions in cyclical bank stocks
“You'd be crazy not to trade around a court position.”
Listen at 41:26
Investors should not trade secular growth stocks
“those you shouldn't trade.”
Listen at 41:37
Investors should own NVIDIA rather than trade it
“I always say own NVIDIA, don't trade it.”
Listen at 42:36
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Books & mentions
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