Jim Cramer: Macau is Back

Former hedge fund manager, author and current TV personality, Jim Cramer has spoken about the returning state of Macau’s economy. Macau is an autonomous territory in China that was once a gambling haven. In 2014, the Chinese government cracked down on Macau after corruption cases and allegations.

In the 2 years since the crack down, major casino resorts like the MGM, Las Vegas Sands and the Wynn Resorts have lost 43 percent, 60 percent and 80 percent of their value. MGM had the lowest losses as it’s establishment in Macau was at a minimum.

Many experts believe that the stocks have finally bottomed out and as a result, investors are looking to buy them. Cramer urges investors to get a move on and not wait around. He is backed by data as there was a 1.1 percent increase in gaming revenue this month. This was the first time that Macau gaming revenue showed a positive growth since 2014.

Cramer says that many investors have already missed out on making great investments as they “waited for a green light”. referred to a stock predicting machine that could forecast 6 months in to the future. He claimed that this system already predicted this pickup and the “easy money” has already been made. Ideally, the time to buy stocks is earlier in the year  but it is advisable to go forward with the Macau stocks as they are currently valuable.

Cramer recommends that Las Vegas Sands as the safest investment as it has credible reputations in multiple markets. For investors that prefer more risky investments with high-payoffs, Cramer recommends going for the Wynn. The Wynn could make a big return if VIP gamblers return to Macau. Regardless of where you put your stocks, investors have the potential to make it big.