Instead of concentrating solely on Europe’s debt crisis, investors should have one eye on Europe and the other focused on opportunities in American stocks, said Jim Cramer on CNBC’s “Mad Money.”
In Cramer’s opinion, it is important to monitor Europe’s debt woes. Over the past year, investors who closely monitored the crisis knew to avoid companies that do substantial business in the region, he said. They would also know to avoid financial companies that have exposure to European banks, he added. Investors would also notice that the region isn’t consuming as many commodities lately, so they would avoid companies that produce such goods. In the end, fears over Europe would have left investors out of two-thirds of the Dow Jones Industrial Average, he noted.
Cramer said investors who also looked for opportunities in American stocks often received “amazing returns.” Stocks of underlying companies with no European exposure did alright, he said. Take American retailers, for example. Home Depot and Wal-Mart Stores posted gains of 49 and 27 percent year-over year respectively.
Other “purely domestic” companies saw shares climb, too. Wireless carriers AT&T andVerizon gained 15 and 22 percent in the last year.
Dividend-paying technology stocks Inteland Microsoft saw gains, too. Intel rallied 27 percent while Microsoft posted a 22 percent gain, Cramer noted.
Shares of Walt Disney also climbed in the past year. The stock rallied 23 percent, as the company was helped by its theme parks, movies and television networks.
All of these were among the best performing stocks in the Dow, Cramer said. Those who were aware of the issues in Europe should have isolated these best performers and pounced on them, he continued. Going forward, Cramer recommends investors pay attention to what’s going on in Europe, but don’t lose sight of the opportunities in U.S. stocks.