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Cramer points out the overlooked markets that could drive the next leg of global growth

  • "Mad Money" host Jim Cramer makes the case for investing overseas.
  • Economic statistics from around the globe suggest international growth is picking up.
  • But what Cramer finds most reassuring is the action in commodity markets, he says.

With investors worried about President Donald Trump's stymied agenda, the Federal Reserve's interest rate hike schedule and overvalued stocks, Jim Cramer flagged one growth area they seem to be ignoring.

"What isn't getting enough attention by anybody is how we're seeing such strong turns in so many countries and continents around the globe," the "Mad Money" host said.

One after another, European countries are resolving their banking crises, signaling full speed ahead for the euro, one of Cramer's favorite currencies, to run higher, he said.

"It's why I think the EZU, the iShares MSCI Eurozone ETF makes so much sense to own," Cramer added, referring to the exchange-traded fund he sees as the best way to play the euro's moves.

Cramer's faith in foreign markets comes from a wave of positive data, from PepsiCo's earnings report showing business stabilizing in Russia to China's report of a better-than-expected 6.9 percent GDP, or gross domestic product, for the second quarter.

"But what I find most heartening is the action in the commodities and commodity-related stocks," the "Mad Money" host said.

For example, shares of BHP and Vale, two stocks closely aligned to strength in commodities, have been climbing, with BHP up over 10 percent for the year and Vale making a long-awaited turnaround, with shares up 22 percent in 2017.

BHP, a mining, metals and petroleum giant, also offers a 4 percent yield, and has activist fund Elliott Management involved in making positive changes at the company to entice investors.

Cramer added that shares of Australian-British mining and metals operation Rio Tinto are also up 18 percent for the year, yet the company still yields 5.53 percent.

Moreover, the iPath Bloomberg copper index, an ETF that tracks copper prices, looks set to break out, and the stocks of companies like Caterpillar, Cummins, Honeywell, Boeing and 3M have all been headed higher. All of them do over half of their business overseas, Cramer said.

With U.S. investors up in arms about a standstill in housing markets, rising health care costs and declines in auto stocks, Cramer argued that times like these may warrant thinking outside the country.

"I can't stress how important this development is," he said. "This is the quarter that international saves the domestic situation, and not just because the dollar's getting deliciously weaker versus other currencies. The rest of the world's simply in better shape than we are right now, and that means so many of our stocks with global businesses could have a lot more room to run."

Cramer: The case for letting foreign markets boost your portfolio

Disclosure: Cramer's charitable trust owns shares of PepsiCo and the iShares MSCI Eurozone ETF.

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