The Next Bull Markets

There's always a bull market somewhere, and now the bull market is with all of the companies that are big users of oil that have very little economic sensitivity, because people are convinced that there is a worldwide collapse in earnings. The tough thing about this switch is that the real bulls are the overstretched valuations: Pepsi (PEP - commentary - Cramer's Take), Colgate (CL - commentary - Cramer's Take), Procter & Gamble (PG - commentary - Cramer's Take), Kimberly-Clark (KMB - commentary - Cramer's Take), General Mills (GIS - commentary - Cramer's Take), Kellogg (K - commentary - Cramer's Take).

However, just like the oil and gas stocks are forecasting dramatic declines that will do much more than crimp earnings, you have to believe that all of the estimates for these consumer staples are way too low. That's what I would bet with a KMB and a PG, especially as they have taken pricing. So has Kraft (KFT - commentary - Cramer's Take) and General Mills. Heinz (HNZ - commentary - Cramer's Take), too. Campbell's (CPB - commentary - Cramer's Take) is doing it now. These seem to be headed higher because of those. Pepsi, when it takes a lot of pricing this quarter, could be the best of all. (I am buying it.) Don't forget Avon (AVP - commentary - Cramer's Take) and Tupperware (TUP - commentary - Cramer's Take), both with great quarters; the latter is a huge beneficiary of the nat gas collapse. The drugs don't benefit from oil and they need a weak dollar, which isn't in the cards for the moment. But for those who think that the decline in commodities is signaling total collapse of the economies, then these will work. Schering-Plough (SGP - commentary - Cramer's Take)? I don't know ... I like Gilead (GILD - commentary - Cramer's Take), which is on fire. Abbott (ABT - commentary - Cramer's Take) had a great quarter. Bard (BCR - commentary - Cramer's Take) and Becton (BDX - commentary - Cramer's Take)? The latter, thought of as a resin play, seems particularly good for the moment.

Then there are the techs that react well to the decline in commodities, and the financials that get the pressure taken off by the Fed. The issue with both of these, unlike the PGs of the world, is that they offer no assurance that the earnings are going to come through. I think Qualcomm (QCOM - commentary - Cramer's Take) has the best visibility, and I believe that Cisco (CSCO - commentary - Cramer's Take) is so low you could catch a little bounce, but that's a tough call.

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