When Cramer said investors suffered a “vicious roller coaster” of a market on Wednesday, he had no idea how much worse it would get on Thursday. During trading today, the Dow plummeted almost 1,000 points after riots broke out in Greece, as people there lashed out against newly approved austerity measures.
During Thursday's Street Signs, Cramer reiterated his call from the day before, saying that investors should stay far away from short-term trades and focus on stocks with little to no exposure to the debt crisis taking place in Europe. Keep reading for a full summary of his recommendations.
Cramer endorsed “uniquely domestic” companies or those with strong secular growth that plays to Europe’s weaknesses. Basically, go for the boring names that do well when people are terrified of an economic slowdown.
For example, governments across the globe are fighting to contain medicals costs, so Cramer thinks they’ll encourage generic drugs, especially in Europe. That’s good news for Teva Pharmaceuticals .
The same thing goes for housing. Cramer fave Weyerhaeuser isn’t worried about the euro. The only two drivers for this stock, he said, are the company’s conversion into a real estate investment trust and Cramer’s predicted housing shortage by the end of 2011.