Cramer: Prices Are Down, Start Buying?
Despite all the doom and gloom we hear about the markets, Cramer sees one bright spot that people seem to over look: A lot of things are cheap right now, much cheaper than a year ago.
The list goes on…Natural gas prices are off 70%, clothes as much as 50% in some stores, and, according to Cramer’s sources, cars are going for 20% less as a result of General Motors and Chrysler’s dealership closings. This deflation is a huge positive, the Mad Money host said, and not a negative. For American’s who have been lucky enough to keep their jobs, there are tremendous bargains to be had, and Cramer urged them to take advantage.
Stocks are no different, so investors should keep these massive price declines in mind. Cramer endorsed Bank of America, down 52%, CSX , down 49%, and BP, down 31%, as plays on the trend. He said he likes Verizon Communications as well. While he doesn’t yet see any catalyst that warrants an all-out buying spree (though Oracle’s after-the-bell report could trigger a tech rally), he thinks these four stocks work right now.
Cramer shrugged off any potential criticisms that he’s some Pollyanna blind to problems in both the markets and the economy. He just wants people to recognize that virtually every kind of merchandise is so cheap that it outweighs the alleged threats to a recovery about which everyone seems so concerned.
Inflation? Rising interest rates? Not an issue given these lower prices, Cramer said. Instead of looking back just three months, consider an entire year – then you’ll see how cheap things really are.
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