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Cramer: Real Growth Stocks Rule This Rally

This column was originally published on RealMoney on May 30 at 1:48 p.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here .

Earlier this week I was freaking out because of the rally in the Procter & Gambles (PG) and Kelloggs (K) of the world. It wasn't long-lasting. We have come right back to where the wild bull markets are -- don't miss the great recap of my show every night , including last night's show , which dwelled on this theme -- and it is helped today by the big Deere (DE) buyback.

But take a look at this day. You can see where the money flows right after any showdown between the bulls and bears: infra, oil service, minerals, aerospace. It is as if these stocks had motors that kick in, hidden generators, when everything else is flatlining (read: drugs or banks). These keep going and going and going...

Don't forget, one of the reasons these companies can do that is that they've been shrinking float like mad over the years and just don't have enough shares around to satisfy the myriad buyers.

You need to understand that the market comes back to real revenue growth and earnings growth, not the manufactured earnings growth with single-digit revenue expansion like so many of the packaged-goods companies have.

That's why these stocks -- infra, oil service, minerals, aerospace -- are always the place to go in selloffs like the one we had this morning off of China's decline.

Random musings: Can't stock the Crocs (CROX), that's the word I get from my retail friends. ... Spirited discussion in the Answers section of Stockpickr about MasterCard (MA). You know I think it is going much higher. Also catch the discussion on Apple (AAPL) and why I think it should be scaled out of in front of the iPhone launch. I just sense the hype is too darned high.

At the time of publication, Cramer had no positions in any of the stocks mentioned in this post.

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.

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