So with commodities taking such a huge hit of late, “I cannot make my lot with the basic materials.”
Consumer staple companies, though, whose products are made from natural gas and oil, stand to gain in this market. Retail, too, is a “huge beneficiary,” as are the banks.
Need proof? Just look at VF Corp., climbing $4.15, or about 5%, with less than hour to go in Wednesday trading.
“You can’t get that kind of run-up unless retail’s in a bull market phase,” he said.
Jones Apparel, Kohl’s, J.C. Penney, and Cramer favorite Macy’s are doing well.
Cramer thinks retail will get an added bounce if Democratic presidential hopeful Barack Obama is elected president because there’s a good chance Obama will cut taxes on everyone but the rich. Add to this falling gas prices, and it puts retail in a great position.
Cramer also tackled housing during Wednesday’s Stop Trading!, saying the stocks “are too hard to call.” Each one has its own particular flaws and he can’t get behind any – not Toll Brothers , KB Homes or Centex – right now. Buying these names would be “hazardous,” so investors should go with an index if they want to play this sector.
Lastly, Cramer said that Schlumberger was the play on Ospraie Management closing its flagship fund. Heavy losses due to commodities investment forced the closure.
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