The market’s got it wrong, Cramer said today during Stop Trading!
Stocks that do well in an economic slowdown are getting sold when they should be getting bought, he said. For instance, Colgate , which just reported a great quarter, is down. Procter & Gamble , another soft goods giant that investors flock to in a slowdown, is trading down as well.
The honest market is in stocks like Washington Mutual , Wachovia , Lehman Brothers , Beazer Homes and Toll Brothers , Cramer said.
“This isn’t done.” Cramer said. The Fed has a plan to “wipe out the speculators,” and that isn’t going to include a rate cut until a recession is imminent. Cramer disagrees with this outlook, but he’s “betting with the Fed now.” That’s why he thinks consumer staples like Coke , P&G and Colgate are buys right here.
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