It's important to learn from history: Jim Cramer on which stocks perform best after rate cuts start

Finally, the market's behaving like you expect when the Fed is your friend, and as I told you at the top of the show, believe me, there are few things more friendly than a 50 basis point rate cut. I told you over and over again that there are discrete phases in the business cycle. When the Fed is your enemy, when it's raising interest rates, you want to stick with the recession-proof stocks, stocks and companies that can produce consistent earnings even in a slowdown. Then, once the Fed's done tightening and we start seeing signs of impending rate cuts, you need to load up on the cyclicals, the companies that can see massive earnings growth, when the economy accelerates. But what works best once the rate cuts have already started? Yesterday, Sarah Minnan and the CBC Pro team ran an analysis of which stocks in the S&P 500 tend to perform best over the three months after the Fed starts easing. I like this piece. Going back to 1994, they identified 10 stocks with the highest median performance after the first rate cut, and it is really a surprising list. Get this. Western Digital, Ram Research, UnitedHealth Group, Expirators International, Apple, Kroger, Textron, Franklin Resources, Amgen and Target. Surprising amount of tech in there, too. Surprising amount of healthcare. So let's go through them one by one, because I think it's important to learn from history whether or not that history ends up being repeated or not. Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Cramer, hashtag MadMentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.