The infrastructure stocks are still ramping up on anticipation of President-Elect Barack Obama’s stimulus plan. While Cramer was bullish on these names a week ago, he urged investors now to wait for a pullback before buying.
Terex, Manitowoc, Caterpillar – hedge funds have been scooping up the infra sector, as well as natural-gas names, on the assumption that the economy is about to turn around. But therein lies the problem, Cramer said. The Mad Money host doesn’t think we’re out of this recession yet, nor will we be in the very near future. So other investors should not follow the hedge funds’ lead.
“You have to do the opposite of what the hedge funds do,” Cramer said. “Because they’re just incapable of making money for you.”
When the hedge funds are leaving the Colgates and Kimberly-Clarks, he said, “I have to go right back in them.”
Cramer also mentioned that he thinks eBay should buy the 82% it doesn’t own of its Latin American counterpart MercadoLibre . MELI on a pullback is worth buying, he said.
And lastly, Cramer said he still likes fertilizer play Terra Nitrogen – but only this stock and none of its peers. TNH offers investors a good dividend yield.
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