More M&A Will Help Us Turn the Corner

What cures what ails this market longer term? Frankly, I'm watching what happens to the credit markets -- and no one knows more than Tony Crescenzi, who details the positives -- and what happens on the deal front.

Today, Abbott (ABT - commentary - Cramer's Take) -- one of my faves -- buys Advanced Medical Optics (EYE - commentary - Cramer's Take), a total win for both companies, the latter because there's nothing like found money in this tape, and the former? Abbott is taking advantage of a company's whose stock has dropped dramatically, not unlike what Johnson & Johnson (JNJ - commentary - Cramer's Take) did late last year with Mentor.

These kinds of changes say, "Wait, stocks are still worth something, even if the economy's no good." Of course, Abbott's buy is not economically sensitive, but, alas, SO WHAT! Abbott's a stock. Advanced Medical is a stock. This deal does not need mortgage rates to be better or for foreclosures to stop. You just switch directions and go buy health care that doesn't need big hospital buys (ixnay on Intuitive Surgical (ISRG - commentary - Cramer's Take)) or Medicare largesse.

These deals have a ripple effect. More deals mean more fees for investment banks, not bad given that they are on the ropes. More deals bring more investors to the table.

If you get a credit market that works and you get some deals, you'll get a reason why the decline, ultimately, doesn't last forever.

I'll take that. Especially in light of last week's brutal decline.

Random musings: I would sell Las Vegas Sands (LVS - commentary - Cramer's Take) right now off of some restrictions in Macau. That stock should give up its gains given how bad Las Vegas is.

At the time of publication, Cramer was long Abbott and Johnson & Johnson.

---

Know what you own: Cramer mentions Abbott Laboratories. Other companies in the pharma industry include Pfizer (PFE - commentary - Cramer's Take) and Novartis (NVS - commentary - Cramer's Take).

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

---

Jim Cramer is co-founder and chairman 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. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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