The Dow is down more than 100 points today. Some on the Street think the market is growing too fast to allow for Federal Reserve rate cuts.
“We’re too early to make that conclusion,” Cramer told Erin Burnett during Stop Trading!. Besides, he said, “Being the slowest economy in the world is nothing really great to write home about.”
Cramer wants Fed Chairman Ben Bernanke to realize that rate cuts aren’t always about inflation. “It’s about the idea that we shouldn’t have 1% GDP growth,” he said.
If traders are looking to take profits, though, Cramer has a few suggestions. His charitable trust sold its position in Lamar Advertising, which makes animated billboards he thinks are too distracting for drivers. Traders in need of convincing should consider Daktronics, which is also in this space and is not doing well.
There’s also Archer Daniels Midland. “The wheels have fallen off the Archer Daniels bus,” Cramer said. He admits he got this one wrong.
The one buy Cramer recommended today was General Dynamics. This is a play Cold War-type play on China’s ability to rival the U.S.’s own nuclear arsenal.