Cramer: 'Cult' and international stocks the places to be
Investors should be generally cautious as the market surges toward new records, but several stand-out stocks are likely to end the year much higher, CNBC's Jim Cramer said.
"This is a remarkable moment, and people are willing to overlook a lot of stuff," Cramer said on "Squawk on the Street" on Thursday. "It's an up market. Maybe it shouldn't be, and I fear the [government] shutdown, but, wow. … I do think that you have got to be careful here—[the stock market] just had a very big move."
A stock like Rite Aid may have more upside potential, but any run higher is likely limited, he said. It's better to "wait until things come down" before buying stocks that have made big moves recently, he added.
Cramer warned that despite many names' approaching overbought territory, a handful of "cult" stocks should continue their rally through the rest of the year, supported by a group of dedicated buyers with high expectations.
One such company is Tesla Motors, he said. "That thing is such a cult, I don't want to get in front of a cult." He also listed Netflix, Ulta Salon, Lumber Liquidators, Yelp and Tractor Supply as having similar support.
"Those are the cult stocks of the growth momentum players. Do not get in front of a growth stock between here and year-end," he advised.
Cramer also said that international stocks are a good bet to weather the uncertainty generated by events such as the debt ceiling debate and a potentially overbought U.S. market. He listed United Technologies, Honeywell, 3M and Boeing because "these happen to be international companies that are located here."
One name Cramer said he "furiously" believes in and owns in his charitable trust: Facebook.
"I do think that Facebook is a real stock. A real company, a real stock," he said. "I think the monetization there is going to be great."