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Cramer: Their weakness is our strength

Cramer: Their weakness is our strength

Jim Cramer thinks that investors are confused. Why the heck would bad news overseas mean bad news for the U.S.?

The confusion showed in the market on Monday when it opened low because of weakness in Japan and ultimately closed with stocks little moved.

Now, Cramer understands the weakness. He gets that there are ripple effects from Japan that go through the already weak Europe and drifts into the U.S. That doesn't mean he agrees with it though.

"It's that early morning selling that's proven just plain stupid, because soon after the selling wave hits our shores, the real situation kicks in. The positive situation that's unique to America, and America alone, in this world," said the "Mad Money" host.

Russia's President Vladimir Putin speaks at a news conference at the end of the G20 summit in Brisbane November 16, 2014.
Mikhail Klimentyev | RIA Novosti | Kremlin | Reuters

The upside to the current political economy, is that the U.S. has so many companies that do not have much overseas economic exposure. This includes the healthcare cohort that has been bleeding with takeover activity lately and makes them a natural safe haven from Japan, Europe and China.

"Ever since Europe began to slow and the EU central banker Mario Draghi decided to try to jump start the continent's economy, our rates have gone much lower that should have been possible after the Fed stopped its bond buying program," said Cramer.

Another upside to the U.S. is lower oil prices. Lower prices should ignite our economy, since this translates into cash directly into consumer pockets saved at the gas pump. Even better the oil companies are continuing to pump oil like mad, so there is no short-term sign that prices will rebound.

That means the airlines will keep on flying, and travelers will keep on travelling.

"I think one of the biggest mistakes being made by money managers this year is the failure of parallel thinking," added Cramer.

Often managers are triggered to buy or sell the based on overseas events. But Cramer sees that there are plenty of people overseas who are just bursting with money and want to get out of their faltering currencies and into a stable market. They want to invest in the U.S.

So there is no need to panic over turmoil overseas. It is not necessarily a tragedy for our market.

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Yes, Cramer recognizes that there will be geopolitical events that will cause a slowdown for certain. And he still doesn't trust the Ukraine-Russia situation, especially after Putin walked out of the G20 session.

But a hedge fund manager in Japan isn't sitting there wiping his tears and thinking about how terrible a place Japan is to invest. No, he's looking for where he can invest his 10 million yen. That is a place like the U.S.

Their weakness is our strength. Cramer knows that this will be the case until things get better, which could be a very long time from now.

Call Cramer: 1-800-743-CNBC

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