Now's the Time to Move on Growth Stocks

High growth is so right here. And the out-years are being valued so much higher because of the 10-year providing very little competition. I think there is a whole group of investors who have no idea about the importance of stocks being considered long-dated assets. The 10-year says that inflation will be very low, and that means the earnings from far away get discounted much more positively.

When we look, for example, at a Celgene (CELG - commentary - Cramer's Take), you can put a value on the 2012 year of earnings, because that's the long-dated asset version of Celgene, the true way to look at equities. That's how CELG can be considered undervalued on all the tests on Revlimid uses that will surface in the out-years.

Medco Health (MHS - commentary - Cramer's Take) has a great story for 2012 because of the rollover of patented drugs to generics. That gets the value now too, again because of the paltry value of the 10-year. The inflation rate is so low, and the competition from bonds so meaningless, that Medco's numbers seem great.

Which brings to tech. Why can't we start valuing Google's (GOOG - commentary - Cramer's Take) obvious revenue stream and its takeaway of big percentages -- gobs -- of advertising from the major players, the magazines and newspapers (how dangerous is that New York Times (NYT - commentary - Cramer's Take) stock?)?

You can simply start taking those out-year gains to the bank.

I see it for a host of stories, Cisco (CSCO - commentary - Cramer's Take), Amgen (AMGN - commentary - Cramer's Take) -- after this non-ruling -- Gilead (GILD - commentary - Cramer's Take) and anything else that is so high-growth that it makes bonds seem like a joke. Same with VMWare (VMW - commentary - Cramer's Take) (and hopefully EMC (EMC - commentary - Cramer's Take) besides that).

That's what's going on right now. Growth is still cheap, and it will get more dear as time goes on. Which is why you need to be in it now. And it will only get better as long as the Fed stays as tight as it is.

At the time of publication, Cramer was long EMC.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.