What’s bad for the European Union, Cramer said during Monday’s Stop Trading!, may be good for the US. He thinks the EU’s debt problems have helped fuel the rally we’ve seen in the American markets.
“This is a gigantic movement of capital out of Europe to the United States,” Cramer said.
Investors in the EU are looking for a safe place to put their capital, and right now that’s the US. Hence the “remarkable run” we’ve recently seen, as Greece has struggled under the weight of its debt.
“And if Spain goes bad, or Portugal goes bad,” Cramer said, “we will continue to have our run.”
Cramer called the euro a “broken currency” and cited it as the reason for incredibly low interest rates here in the States.
“And as long as rates are low, I’m bullish,” he said.
Cramer called the EU’s currency problems “our gain.” And while the markets may worry about what will happen in Greece, Spain and Portugal, he said, “Stocks are competitive” as long as those rates stay low.
In other news, Cramer said he liked Citigroup as the bank to own once the financial regulation debate is over. By then the “headline risk” will have passed and investors can focus on the company’s strong international business. He also expects the government to unload its significant stake in Citi at a “good price,” rather than dumping its position all at once, which would depress the share price.
“People should be readying for Citigroup to be in their portfolio,” Cramer said.
Cramer also endorsed buying Hertz Global on its takeover of Dollar Thrifty and the strength of its business overall.
And lastly, Cramer said that some Amazon.com shareholders may have cashed out when they didn’t get the guidance they expected from the company. But with the stock up about $3.40, or near 2.4%, on Monday, he thinks some of them may have reconsidered. He called the company a “premier retailer” that’s “ready to run.”
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