CNBC’s Jim Cramer on Monday cautioned investors against investing in brown foremanThe owner of the whiskey brand Jack Daniels.
“It’s a very tough market. It has incredibly high standards. Brown-Forman stock would normally be a no-brainer in a normal downturn, but it’s impossible for me to recommend here,” he said.
The reason he cannot recommend the stock of the company is because it is too expensive.”mad Money” host.
“There are all kinds of high-quality companies out there that have incredibly cheap stocks. Nobody wants to lay their necks on a price, even if the underlying story is good,” he said.
Monday was a particularly difficult market day, with the S&P 500 falling to its lowest level Since March last year and closing in bear market territory. The Dow Jones Industrial Average and Nasdaq Composite also declined.
Shares of Brown-Forman fell 3.42% despite news of a collaboration between the two companies.
Cramer blessed investors with buying shares of Coca-Cola, though he said the stock is “doing just fine.”
“It’s a textbook recession stock – people will keep drinking their beverages, no matter what happens to the economy,” he said.