Jim Cramer saw a strong correlation on Wednesday between a change in consumer behavior, and the stocks the soared. Sometimes the change is due to the different habits of millennials, and sometimes it can be linked to a government mandate. Either way, they both played a role in how the market closed.
"I love behavior-change investing. It can be incredibly lucrative, and when you have a behavior-change theme you can use selloffs to pick stocks based on those changes, as long as you don't think they are merely fads," the "Mad Money" host said. (Tweet This)
The first obvious change on Wednesday was entertainment, meaning, how and what people consume and where they do it.
Traditional entertainment companies like Disney, Time Warner, 21st Century Fox, CBS and Discovery were totally shredded to pieces. The earnings from Disney raised enough eyebrows for investors to question how people are consuming television, and it freaked everyone out.