Commercial real estate will not collapse, Cramer said during Wednesday’s Stop Trading!, thanks to a crucial change in the tax code. The best way to play it is with an industry ETF.
The updated law will allow people in “unbelievably difficult to undo” real-estate deals, Cramer said, to work their way out of them, thereby preventing loan defaults. While some investors are buying Annaly Capital or Capstead Mortgage as a trade, Cramer instead recommended the iShares Dow Jones US Real Estate exchange-traded fund. While he admitted the IYR was “heavily shorted,” he is bullish on the ETF.
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Another key trend in the market right now is the move in chlorine, caustic soda, polyvinyl chloride, Cramer said, as their usage increases in a healthy economy. There’s been a lot of “positive chatter and upgrades” of PPG Industries because these products are in demand again.
“That’s a sign that the real economy’s back,” Cramer said.
Cramer's charitable trust owns PPG Industries.
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