Jim Cramer has finally reached the point where he can clearly see that the main force behind the market's bear phase is not just earnings. Investors are worried about credit, specifically pertaining to high-yield bonds.
"If your company needs debt in order to grow, then your stock is being punished, and there is not much that can be done except to watch the carnage, wait it out, or just take a loss," the "Mad Money" host said.
Cramer cited the case of XPO Logistics, the trucking company that visited "Mad Money" on Friday. CEO Bradley Jacobs confirmed that while the company is doing well, the stock is hurting.
The reason? It's because XPO is a roll-up company. That means it is a vehicle used by the CEO to buy other companies to grow or dominate an industry. XPO recently announced the purchase of Con-way, a giant trucking company, for $2.72 billion. This deal was right on the back of another large acquisition by XPO; it purchased European logistics company Norbert Dentressangle earlier in the year.