Home Gamers can take solace in the fact that one of Cramer’s favorite stocks – and one his charitable trust owns – Goldman Sachs, is not one of the brokers involved in this mess. And hopefully you listened when Jim when he told you NOT to buy GS until Friday no matter how good their report was – and it was great.
The subprime market will continue to suffer, but the other sectors will recover. They just need to go down first. You might question why food, drug and medical care companies – stocks that usually do well even when housing and mortgages are dropping – still slipped today. That’s because, in the end, they’re stocks first and companies second. At first blush, all stocks have to go down because stocks are commodities and the commodity that trades is the S&P 500. The whole market went down because people wanted out of stocks, and they got out by selling the S&P.
But these three sectors are still your best defensive play. You just want to wait until the S&P 500 futures expire Friday. Cramer doubts there will be any upside worth noting before then, so wait for Monday before you buy in. Kroger , Verizon, AT&T, Colgate Palmolive and Kimberly Clark are all worth a look when the time is right.
Bottom Line: Every sector got trashed today, and that’s just plain wrong. You’ve got a chance to pick up great merchandise at low prices. Be sure to check the rest of today’s MadCap Mad Money recap for the rest of Cramer’s best buys after the selloff.
Questions? Comments? email@example.com