The talking heads are saying it. Traders on the Street are saying it. The average American is saying it. Expensive oil is bad for the market. So is the weak dollar.
These people couldn’t be more wrong, Cramer said Friday on Mad Money.
Oil has been the market leader this whole time, driving all the most important bull markets. The search for aircraft that use less oil has ramped up aerospace. The need for new power plants that use less oil has given a boost to infrastructure. Agriculture and machinery both owe a good part of their booms to oil as well, Cramer said.
Then there are the companies that design the tech necessary to get to the oil, like Core Labs and FMC Tech. And don’t forget alternative energy stocks like First Solar either, which get a bump from the need for oil substitutes, or natural gas and deepwater drilling.
And the weak dollar means foreign investment in the U.S. Canada’s Bank of Nova Scotia starts to longingly eye American banks. European chemical companies target Stateside firms. And an Asian steel outfit like Posco homes in on U.S. Steel.
“Expensive oil is good for the market. The weak dollar is good for the market,” Cramer said, adding that investors looking toward next week need to see the big picture.
Normally, the Game Plan focuses on earnings, but aside of Rite Aid on Thursday, which Cramer likes, it’s all conferences for the next seven days.
Credit Suisse’s chemicals conference should give Nova Chemicals and Air Products and Chemicals a chance to shine. Cramer said the Street’s estimates are too low for both these companies.
For UBS’s life sciences conference, Hologic is presenting. The company could be the leader in women’s health when its deal with Cytyc closes, Cramer said.
Jim’s charitable trust owns Hologic.
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