Finally, the specter of health-care reform has been driven from the market. Like it or not, President Obama on Tuesday will sign his much-anticipated bill into law, and that certainty should help Wall Street find some stable ground. Then question then is, what’s next?
Cramer on Monday said that buying after a “big bad event” like the health-care vote is an incredibly bullish move, especially as we move into what he thinks will be a strong earnings season. And because the bill’s benefits kick in this year while its proposed taxes won’t hit until 2011, investors have a great window of opportunity in which to buy stocks.
The places to look for the best companies, Cramer said, is in any of the bull markets taking place right now. The earnings estimates are too low in these industries, and he expects the big money to flow into them now that Obamacare is pretty much behind us.
That means the mobile Internet and its major players: Apple , Broadcom , Marvell Tech , Qualcomm and others. Companies that make the Internet faster – JDS Uniphase , Cisco Systems and Ciena – also work right here. In aerospace, Cramer likes Boeing and Honeywell International . And among the autos, he endorsed Johnson Controls and Lear .
Cramer said that the generic drug makers and biotechs should continue to push higher, thanks to health-care reform and the Democrat’s preferred treatment of pricey drugs, respectively. He recommended Abbott Labs in this space, saying it took the most hits and therefore has the most room to rebound.
And, finally, the retailers shouldn’t lose their momentum, either, Cramer said. At least not until the taxes from health reform kick in. He likes discounters and housewares sellers Costco , Bed Bath & Beyond and TJX Cos .
Cramer’s bottom line? As long as the bill for our new health-care system has yet to be paid, and good earnings are on the way, then investors should buy stocks. He thinks these bull markets are a great place to start.
Cramer's charitable trust owns Abbott Labs, Apple, Cisco Systems, Johnson Controls, Honeywell Internations, Costco and Qualcomm.
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