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There is always something to worry about. That’s just part of investing. These days, though, people are taking it too far. Bulls and bears occupy extreme ends of the fear spectrum, scaring the rest of us away from opportunity. This seeming imbalance has Cramer searching for the middle ground, and he urged viewers on Wednesday to follow his lead. It could be the best way to stay in the game.
Look at inflation versus deflation. Some investors fret the former, while others dread the latter. Cramer is guessing that the law of averages puts us somewhere in between on a measured inflation track. Because the banks do well in that environment, he thinks JPMorgan Chase [JPM
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] and Goldman Sachs [GS
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] are worth buying.
Even Cramer has been worried about oil’s rising price – because it makes gas more expensive, which hurts consumers’ spending power. But the sector’s stocks are such major market players that there may be no need for concern at all. Crude’s decline has gotten just as much attention, though, so again, maybe we’re at the right level. He recommended buying Transocean [RIG
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], Schlumberger [SLB
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] and Occidental Petroleum [OXY
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] on a pullback as plays on this.
And interest rates? Sure, they’ve climbed higher recently. But rates are still down big from this time last year. Add in the $8,000 tax credit for first-time homebuyers and the increase is all but negligible. Unless someone plans to take out a jumbo mortgage, he or she won’t feel the 0.44 percentage-point bump. That makes a regional bank like FirstMerit [FMER
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] more attractive, Cramer said.
The dollar isn’t exempt from Wall Street’s either/or fight. Some traders think a weak greenback is a serious detriment for the markets. Cramer, however, is more worried about a strong dollar because it hurts U.S. exports. Companies like Coca-Cola [KO
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], Kellogg [K
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] and Merck [MRK
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] would all be affected. But given this debate’s intensity, we’re probably near the halfway point. So investors shouldn’t worry.
Now, Cramer always endorses caution. But he didn’t want viewers to get swept up in a whirlwind of panic. The markets have their peaks and valleys, just like the dip we saw today. What else would you expect after stocks’ recent gains? Heck, Cramer would be worried if there weren’t some profit-taking.
Keep this in mind as the pundits squawk on and on about what could go wrong. Don’t let them scare you out of the game.
Cramer's charitable trust owns Goldman Sachs and JPMorgan Chase.
Call Cramer: 1-800-743-CNBC
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