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Cramer: With Fed fear gone, these stocks thrive

Jim Cramer is no longer frightened that strong earnings could mean that the Federal Reserve will make a move.

"We are finally free to look at the merits of individual companies. We are free to stop fearing that parts of the economy are too good," the "Mad Money" host said.

Fed Chair Janet Yellen relieved the fear of many investors on Tuesday when she confirmed that the Fed would proceed with caution. It proved to Cramer that Yellen is aware that things are far more fragile than they seem and that Yellen understands her actions could severely impact both the U.S. and world economies.

"The main thing we don't need to fear anymore is the super-freaking strong dollar soaring right in our faces. We know that concern is off the table because Yellen's had enough of other countries stealing our jobs and dumping their goods on our shores," Cramer said.





A mechanic works on a jet engine at General Electric's GE Aviation factory in Cincinnati.
Luke Sharrett | Bloomberg | Getty Images
A mechanic works on a jet engine at General Electric's GE Aviation factory in Cincinnati.

Now that individual companies and industries don't have to worry that the Fed will pull out the rug from underneath them at any moment, Cramer thinks several industries will now have the ability to flourish.

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The stocks of airlines were hurt badly by the strong dollar, even as the airline companies themselves are making more money than ever and returning record amounts of capital to shareholders. The strong dollar also crushed tourism and travel in the U.S., prompting airlines to lose foreign business. Additionally, Cramer thinks investors will be more willing to pay up for railroads.

The next industry that will thrive will be tech, which has been decimated by the strong dollar. Everyone from IBM, Microsoft, Alphabet, Apple or semiconductors had large currency swings. Cramer now expects Miscrosoft, Adobe, Salesforce.com, Oracle and Accenture to go higher if the rally in the greenback is halted.

Other industries and stocks that could roar are consumer products companies that have expanded in Europe, such as Procter & Gamble, PepsiCo, Estee Lauder and Johnson & Johnson.

But the best by far will be the industrials, especially General Electric, United Technologies, Honeywell and 3M.

Yellen also cited housing as an area where she would like to see improvement. Cramer was shocked at how little KB Home's stock rallied after reporting a monster quarter last week.

"It's worth more dead than alive, meaning its real estate is more valuable than the company's current market cap, especially its amazing West Coast holdings," Cramer said.

Cramer was surprised that Yellen clearly did her homework on the housing industry and recognized that it punches above its weight in the economy.

And now that Cramer knows Yellen wants the U.S. economy to prosper, he has assurance that there will be plenty of winners surfacing in the stock market going forward.

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