Goldman Sachs’ downgrade of Pepsi to “neutral” from “buy” was the first topic of discussion on Stop Trading! today.
“You’d expect it to be down a buck and a half,” Cramer said, but Pepsi is up about 90 cents.
Pepsi’s strength in the face of this downgrade “immunizes” the stock, Cramer said. He sees it as a sign of where investors should go.
Procter & Gamble has been doing well and buying back stock. Schering-Plough had a secondary offering in the midst of last week’s madness.
“These are really healthy signs that there is a cohort” of stocks that works, Cramer said, adding that the bears aren’t correct when they say nothing works during a sell-off.
“There’s always a cohort that works,” he said. “As the economy slows, more money goes to Schering and Pepsi.”
Lastly, Cramer admitted he hasn’t liked Pfizer , but at $23 he can’t be negative, he said.
“That’s like being negative on Merck in the $30s, which unfortunately I was, and I screwed up.”
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