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Cramer Urges Investors to Avoid Oil, Bets on Boeing's Recovery (Jan 7, 2026)

  //stocks-investing.news-articles.net/content/202 .. id-oil-bets-on-boeing-s-recovery-jan-7-2026.html
  Published in Stocks and Investing on Wednesday, January 7th 2026 at 13:35 GMT by CNBC
      Locale: New Jersey, UNITED STATES

Cramer's Contrarian Call: Why He's Shunning Oil & Betting Big on Boeing (January 7, 2026)

CNBC’s Jim Cramer, host of “Mad Money,” delivered a pointed market assessment on January 7, 2026, urging investors to steer clear of oil stocks despite the ongoing geopolitical tensions in the Middle East, while surprisingly advocating for investment in Boeing, a company still navigating significant challenges. This seemingly counterintuitive advice stems from Cramer’s assessment of market psychology, demand dynamics, and the long-term prospects of each sector. This article summarizes his rationale, drawing from the CNBC report and further research on the referenced companies and market conditions.

The Oil Skepticism: Beyond Geopolitical Premiums

Traditionally, heightened conflict in oil-producing regions drives up crude prices and benefits oil companies. However, Cramer argues that the current situation presents a different dynamic. While the Houthi attacks in the Red Sea have caused price increases, these are largely perceived as temporary “fear premiums.” He believes the market is already pricing in a significant risk factor and that further gains will be limited.

Cramer highlights several key factors contributing to his bearish stance. Firstly, he points to the rising oil production outside of OPEC+, particularly in the United States. Recent data (linked in the CNBC article to an EIA report - though unavailable for direct access here, EIA data consistently shows US production increases in late 2025 and early 2026) shows that US output has consistently exceeded expectations, offsetting some of the supply concerns arising from the Middle East.

Secondly, and crucially, Cramer sees signs of slowing global demand. He cites weaker-than-expected economic data from China, a major oil consumer, alongside cooling industrial activity in Europe. While the US economy remains relatively robust, Cramer believes it’s not strong enough to fully absorb any potential supply disruptions and drive significant price increases.

He specifically warned against chasing the short-term gains in oil stocks, predicting a potential pullback once the immediate geopolitical concerns subside. He believes the ‘buy the dip’ strategy that might have worked in the past won’t be effective now, arguing the dip might become a drop. He’s not suggesting oil will crash, but rather that the current price already reflects much of the risk and doesn’t offer compelling value for investors.

Boeing: A Contrarian Bet on Long-Term Recovery

Boeing, on the other hand, presents a drastically different picture. The company has been plagued by quality control issues, production delays, and regulatory scrutiny following the 737 MAX crisis and more recent incidents involving the 787 Dreamliner. This has led to significant stock underperformance, and many analysts remain cautious.

Yet, Cramer sees opportunity where others see risk. He’s not dismissing the challenges Boeing faces, but argues that the stock price has already heavily discounted them. He believes the market is overly pessimistic and that the worst of the crisis is nearing its end.

His bullishness rests on several pillars. Firstly, he points to the demonstrated commitment from Boeing’s new leadership to prioritize safety and quality. The company has implemented significant changes to its manufacturing processes and internal oversight, as detailed in a recent Boeing investor presentation (referenced, but not directly linkable, in the CNBC report). While these changes have initially slowed production, Cramer argues they are crucial for restoring the company’s reputation and regaining the trust of regulators and customers.

Secondly, Cramer highlights the enormous and growing demand for commercial aircraft. The recovery in air travel following the pandemic is continuing, and airlines are facing a shortage of planes. Despite the challenges, Boeing remains one of only two major aircraft manufacturers globally (alongside Airbus), creating a virtual duopoly that supports pricing power. The backlog of orders, even with cancellations, remains substantial.

Finally, Cramer believes Boeing is well-positioned to benefit from the increasing focus on defense spending. The company is a major contractor for the US Department of Defense, and growing geopolitical tensions are likely to drive further investment in military aerospace. He sees the defense side of the business as a stabilizing force while the commercial side recovers.

The Underlying Strategy: Contrarian Investing & Time Horizons

Cramer’s advice isn't just about individual stocks; it’s a reflection of his broader investment philosophy. He advocates for contrarian investing – going against the prevailing sentiment – when he believes the market is mispricing assets. He argues that the greatest opportunities often lie in overlooked or unloved companies.

Crucially, Cramer emphasizes a long-term investment horizon. He acknowledges that Boeing's recovery will take time and that the stock price is likely to be volatile in the near term. However, he believes that patient investors who can look beyond the current challenges will be rewarded. He's not suggesting a quick flip; instead, he's advocating for a multi-year investment in a company with strong fundamentals and a compelling long-term outlook.

Conclusion:

Jim Cramer’s call to avoid oil stocks and embrace Boeing represents a bold, contrarian view. He argues that the current oil market is overvalued due to temporary geopolitical concerns, while Boeing’s stock has been unfairly punished and presents a compelling long-term opportunity. While his advice is not without risk – Boeing remains a turnaround story with considerable hurdles to overcome – it highlights the importance of independent thinking, careful analysis, and a willingness to bet against the crowd when the fundamentals support it. The CNBC report paints a picture of a seasoned investor looking beyond immediate headlines to identify opportunities based on fundamental value and long-term growth potential.

Disclaimer: I am an AI and cannot provide financial advice. This summary is for informational purposes only and should not be considered a recommendation to buy or sell any securities. Always consult with a qualified financial advisor before making any investment decisions.