Bond market equivalent stocks have been absolutely trashed on Wall Street, and Jim Cramer thinks it could be time for them to make a comeback in the Trump rally.
Some investors may be concerned that the Federal Reserve could raise interest rates in December, which would make the yield for bond market equivalents with international exposure less attractive against the strong dollar.
However, Cramer isn't sweating it. He listed the stocks on his list that are ripe for picking.
"These companies don't report for a long time and I think it makes sense to buy them because they have fallen behind and they are doing better than people think. We are simply reacting to the decline in their stocks, as opposed to the decline in their businesses, which is non-existent," the "Mad Money" host said.
Cramer's first pick was PepsiCo. With reports of city taxes possibly imposed on soda, Cramer recommended that investors who think it could have an effect to short Coca-Cola, with its 3.25 percent yield, and go long PepsiCo with its 2.93 percent yield.
"Sure, you don't have perfect coverage on the dividend, but Coke is much more vulnerable than Pepsi because of PEP's fabulous Frito Lay exposure," Cramer said.
Procter & Gamble also reported a fantastic quarter, but has taken a beating. While the stock isn't cheap based on its price-to-earnings multiple, Cramer noted that its organic growth is the best it has been in years.
Cramer also thinks investors don't understand the trade-off for utility stocks between the demands of the EPA and rate payers. Many utilities spend fortunes to keep coal plants in compliance, only to find the rules keep changing and they have to sink in more money, Cramer said.
One group that he remained wary of was the real estate investment trusts, as many are involved with health care, which Cramer is uncertain about. Others are related to retail, which Cramer is not optimistic about. He recommended letting the REITs come in.
"These bond market alternative stocks have been trashed. I think it is their turn to participate in the Trump rally. Why not? Everyone else has," Cramer said.