Cramer: Here Comes Another Pullback
After the Federal Reserve’s statement sparked a rally that pushed the Dow past 9,900, stocks tumbled back down, closing 81 points lower. Cramer on Wednesday predicted this was the start of another 3% to 5% decline, the kind we’ve seen periodically since the March bottom. If so, he said, investors should use the dip to buy companies related to the “mobile Internet tsunami.”
These are Cramer’s plays on the smartphone. Consumers want faster data, more video and a better Web connection – in the palm of their hands. The trend is so big that he likens it to the mass adoption of the PC. His Mad Money Mobile Internet Index, created to track the group, is up 16% since its Aug. 11 inception, with Ciena , SanDisk and Skyworks Solutions being the biggest winners. Compare that to a 7% increase for the S&P 500 over the same time period.
“These are all plays on the mobile Internet tsunami,” Cramer said of his index, “and I believe they can all go much higher. And that’s what you buy into the sell-off of the next couple days.”
For investors who thought they were late to the game, Cramer shared some good news.
“Despite how much these stocks have moved,” he said, “we are still early on in this trend, and I think it’s going to last for years.”
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