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Cramer: There are 2 markets right now

Right now, Jim Cramer sees companies at war all over the place. They have two choices, either get involved in a deal to kill competition and gain customers or be held hostage by events overseas.

"A war for the inside of your cellphone, a war for the connections to your home or your car or even your watch, and we're witnessing an unprecedented merger frenzy that's roiling the entire market," the "Mad Money" host said. (Tweet This)

The negatives overseas are something that has been floating around for ages, yet they have an uncanny ability to overpower stocks. And when issues such as the Greek situation and a slowdown in China take hold of stocks, the whole market can be brought down.

But the No. 1, most important bullish force in the market right now is takeovers. In Cramer's opinion, giant deals such as Avago's $37 billion acquisition of and Charter's $56 billion purchase of Time Warner Cable are strong enough to breed positive sentiment that can lift stocks up to new levels.

Cramer stressed the importance of merger-and-acquisition activity is for the stock market, stating, "Takeovers plow money, often borrowed money, into the market, which has the derivative effect of creating more demand for stocks when you ring the register on targets, which I am now urging you to do."

When you examine these transactions, you find that they're both necessary and brilliant.
Jim Cramer
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Just think about how much excitement they brew up. For instance, if you owned 200 shares of Broadcom on Wednesday morning at $47, you could have made $2,000 in a single day. Try doing that with a CD!

Some investors may think that all of this M&A activity is just froth, a sign of the top. Cramer understands this and also recognizes that all of these deals would not be happening right now if it weren't for low interest rates from the Federal Reserve.

"But when you examine these transactions, you find that they're both necessary and brilliant. Necessary because these companies need to grow and consolidate or else, and brilliant because these deals actually drive up the stocks of the acquirers," Cramer added. (Tweet This)

For instance, just look at Avago's purchase of Broadcom. Right now, if you were to look inside the body of an iPhone or Apple Watch, you would see various pieces of technology from different companies. Many companies are competing with one another to be a part of the Samsung or Apple ecosystem.

If their parts get into the phone, then the company will thrive and vice versa. So the chipmakers are all at war with one another, and suppliers are constantly spending a fortune on R&D to invent smaller and more powerful chips.

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Or, they can all merge with one another to eliminate competition and provide a one-stop-shop alternative to customers.

"In the end, these deals are all driven by a simple fact: there are too many companies fighting for customers, and those customers are finicky, tough and demanding. The more mergers, the more the power goes to the suppliers," Cramer said.

Cramer sees this as a golden opportunity for investors. It's either the company takes action to thrive, or it dies. Which way do you want your stock to go?

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