Cramer: Japan Reconstruction Prompts Shift Into Cyclicals

More than two months after natural disasters struck Japan, Cramer on Wednesday said the country can finally start rebuilding.

With the nuclear negatives identified, Cramer said the country can now start construction projects. Cramer thought the rebuilding would have started already, but admits he got that call wrong. Nonetheless, he noted there is a "nice shift" back into cyclicals.

Staples were overextended to the upside, Cramer argued. Money is now coming out of staples and flowing into industrial names. Procter & Gamble shares fell, as Caterpillar's stock rose on Wednesday, for example. Toyota's stock performance is another sign Japan is coming back, Cramer said.

People forget Japan is one of the largest economies in the world and it basically went off line. If you look at the charts of soft goods or staples, they basically started their downward move on March 15 — the "gravest day" of Japan's nuclear disaster.

To play it, Cramer is bullish on Caterpillar, Boeing and United Technologies .

When this story was published, Cramer's charitable trust owned Boeing, Caterpillar and United Technologies.

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