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Cramer on 2015: Unfathomable disparity of stocks

Cramer: Year of haves & have-nots

When Jim Cramer took a look back at the past 12 months on the stock market, he officially declared it the year of the haves and the have-nots.

"The disparity within groups is extraordinary this year; the gulf between the winners deep and wide and pretty much unfathomable," the "Mad Money " host said.

In fact, a few examples of the massive disparity between the groups of stocks ripped Cramer's eyes right open.

In the category of the Internet, the three winners were Alphabet, Expedia and Facebook. Alphabet rejuvenated itself hiring Ruth Porat as chief financial officer, and Cramer thinks this was the right move. 2016 could be the year that Alphabet really monetizes YouTube.

You back out their Alibaba holdings, subtract Yahoo Japan, and you get, well, nothing. The stock is literally trading as if Yahoo itself is worthless
Jim Cramer
Andy Roberts | Getty Images

But there were some troubled losers in the same category, too. Yahoo was down a hideous 34 percent for the year because it is widely perceived as being behind its peers, even with its giant stake in Alibaba.

"You back out their Alibaba holdings, subtract Yahoo Japan, and you get, well, nothing. The stock is literally trading as if Yahoo itself is worthless," Cramer said.

Twitter is also down 37 percent for the year, and it seems that whatever the company does, it just won't grow.

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Cramer also found remarkable haves and have-nots in the industrial group. Two years ago, it was even questionable if General Electric was an industrial, since it carried the heavy weight of the financial GE Capital. But since it has shed the financial business, the stock has rallied significantly this year with some of the best organic growth in the sector.

On the flip side are companies in pain like Eaton, Parker Hannifin, Emerson and Caterpillar. The fact that these stocks are down 25 percent was astounding to Cramer, especially considering that they are basically the same business as GE.

The supermarkets also had a stunning dichotomy. Kroger roared 27 percent his year, while Supervalu, Whole Foods and Fresh market all struggled. Yet all of these stores pretty much sell the same foods.

From this evidence Cramer drew various conclusions: first and foremost, he thinks that the concept of a sector-based ETF is totally rejected. An ETF will homogenize everything that is owned, and the haves will be lost within the have-nots.

Second, the Internet has totally destroyed pricing for whole industries, and that is what has created winners and losers.

Third, when Cramer looked at what Kroger did to crack the code with natural and organic, any competition should be scared.

And finally, Cramer thinks it is time to recognize that some business models just don't work anymore. The traditional television and cable market is under siege, now that people have found ways to spend their leisure time differently on Netflix and Facebook.

"Whenever my charitable trust buys something these days, I always want to ask, who is coming in, who has a toehold, who is taking it to a company with a stock that is under pressure," Cramer said.

It is very rare for a have-not to convert to a have, as seen with McDonald's, or vice versa with Chipotle.

So when the conversion happens, Cramer wants investors to take notice before they end up on the wrong side of the trade.

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