High oil prices aren’t forcing open spigots to meet demand, so international deep drillers are cashing in and North American gas companies are not. Usually steep oil hurts the economy, but it isn’t now, Cramer said.
Alternative energy technologies like solar and ethanol used to be prohibitive and dependent on subsidies, but now they’re cheaper than oil. So the stocks keep going up.
Infrastructure stocks aren’t cyclical anymore. The worldwide demand for power has taken care of that, Cramer said. So these stocks are going higher. And the same goes for the fertilizer companies.
Then there’s China. Every Chinese stock is overvalued, Cramer said, but still they continue to climb in share price.
Arbitrage isn’t making sense either. Traders are short VMware, which is overvalued, and long EMC, VMW’s largest shareholder. The fact that VMware has skyrocketed since coming public should mean the stock comes back to earth, while EMC moves higher. But that's not happening. So this strategy isn't working for the pros on Wall Street either.
There’s just too much money in the system, Cramer said. Shorting or selling a stock is the worst thing an investor could do right now. Play the bull markets in tech alternative energy and oil. Think about buying Halliburton, Transocean, Deere, and Baidu.com.
Stop worrying about what’s too expensive for the moment. Welcome the rate cut, and thank Cramer later.
Jim’s charitable trust owns Transocean.
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