So, “$1,300 is not a top,” Cramer said.
Cramer also recommended silver as an investment, saying it was “so cheap versus gold.”
Southwest Airlines snatched up AirTran for a “great price,” Cramer said, praising the deal. He thinks earnings estimates are too low, setting up “blowout” quarters next season. As a result, companies right now are being bought “at the lowest multiple that we’ve seen in years.”
Another reason stocks are so cheap?
“The individual investor hates this market,” Cramer said. “Sixteen straight weeks of outflows [of capital from the market] despite the fact that it looks like we’re about to break out.”
But Cramer used the Southwest-AirTran buyout as an example of why investors should be in stocks and not bonds. Sure, the market has been “horrible for a long time,” he said, “but we’re seeing real gains.” He urged viewers to compare the return they would have received from owning AirTran before the acquisition, or Alberto-Culver before it was bought by Unilever, with the return offered by a CD.
Finally, Cramer pointed to Goldman Sachs’ increased estimates for Under Armour , something he attributes to Nike’s strong quarter on Sept. 23. There has been some worry in the press about rising cotton prices, he said, but demand is “so strong” in this industry it supersedes those concerns. Nike, though lower on Monday, is still a buy, Cramer said.
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