Cramer: Gloom Level Is ‘Out of Whack’

The consumer can’t be dead, Cramer said Wednesday, if the Retail HOLDRs exchange-traded fund is headed higher. And that sector-based ETF isn’t the only retail equity on the rise. Costco , Kohl’s and Best Buy are going up, too.

Given that, Cramer said during Stop Trading!, “Are you still going to say that the consumer is rolling over?”

Rather than the negative outlook many analysts are offering, Cramer sees a “mixed picture” for consumers. Certainly people are shopping, as evidenced in those higher stock prices, but maybe not as much we’d want. At the worst, the situation is “not horrible,” he said, telling investors not to overreact.

“The level of gloom that I hear seems out of whack with how ‘eh’ it really is,” he said. “Just ‘eh.’ It’s not great.”

For potential investments, Cramer recommended gold given the weakness on Wednesday in preferred stock and corporate bonds. Eldorado is his favorite gold miner right now. And he said he also likes dividend yields, specifically those of Wyndham Worldwide and Exelon .

If anyone’s wondering what’s causing the crisis in market confidence, Cramer said, look no further than the White House. President Obama should be taking a much more vocal role in advocating for the economy, whether it’s in promoting home buying, explaining why interest rates are so low or defending the work of Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner. Instead, the administration responded to negative comments from Rep. John Boehner, R-Ohio, on Tuesday by sending out Vice President Joe Biden to tout its stimulus package.

“Guys, come on. Don’t be this tone deaf,” Cramer said of the president and his team. “Step out of Washington and realize what’s happening in this country.”

Call Cramer: 1-800-743-CNBC

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