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Cramer: Sell these stocks on any bounce

Wednesday, 28 Aug 2013 | 6:53 PM ET
No Huddle Offense: Selloff in consumer goods
Wednesday, 28 Aug 2013 | 6:58 PM ET
Mad Money host Jim Cramer shares his final thoughts of the day.

(Click for video linked to a searchable transcript of this Mad Money segment)

There's a good chance you hold some of these stocks. Cramer thinks you might not want to for very much longer.

Largely, the Mad Money host has grown very cautious of the consumer packaged goods plays.

Although Cramer thinks many of these companies are very well run, he doesn't think the stocks of these companies will rally, no matter how good the management.

"A real divergence has emerged in the market," Cramer explained. "Even when other parts of the market rally, companies such as Kimberly-Clark, Hershey, Clorox, and General Mills just look awful."

Tetra Images | Getty Images

And it's that divergence that Cramer finds so troubling.

That's because when rates dropped to historic lows, these stocks became 'bond alternatives.' And if pros believe that interest rates are going higher still, they will avoid these stocks, at all costs.

"Therefore, I think it could be years before these stocks make new highs again," Cramer said.

But that's not the only reason to walk away

"If the economy takes off these stocks will do nothing. Nothing at all," Cramer added That is pros will put money to work in cyclical stocks that benefit far more from the improving economy.

"Third most of these companies are too big to be taken over." Therefore a takeout premium is pretty much out of the question.

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All told Cramer sees no catalysts for any type of meaningful gains.

"Maybe I'll be wrong, but without the prop of lower rates, I think the group's dead money, at best, and that's no place you want to be."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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