Don’t count on infrastructure plays with heavy U.S. exposure to make money in this environment, Cramer said on Monday’s Stop Trading!. Instead, go with a stock like ABB that’s levered to Europe and other high-growth markets in the Middle East and Asia.
Cramer also recommended the GAF , an ETF tailored to emerging markets in the Middle East and Africa, as a way to play the explosive growth in countries like Egypt and South Africa with less risk than any one stock.
Emerging markets have become far more stable places to invest than they used to be, Cramer said. It’s no longer the case that they get pneumonia when the U.S. catches a cold, as he put it. “That story is over.”
Finally, Cramer noted that the sell-off in the retail sector is overblown. With gas prices seeming to stabilize and the federal economic stimulus plan likely to give consumers a jolt, retail stocks have a chance to go higher in the coming months, he said. The Mad Money host would buy JC Penney here, VF Corp at $70, and TJX and Nordstrom on pullbacks.
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