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This is the last really bad inflation number, or among them. We have had a total commodity collapse since this number was compiled. We all know this.
We who watch the markets have lived with this collapse for six weeks. Not only is it
not revelatory, but it is so historical as to be humorous. And the commodities aren't done coming down. They will stay here, rangebound, until the next big batch of bad news, because we are not gaining strength worldwide -- we are
losing strength, as the Baltic Dry Index shows every day.
It is natural to want to sell on these numbers. Easy. Simple. Natural. But remember that you might be selling the big commodity swoon plays --
Procter (PG Quote - Cramer on PG - Stock Picks),
Kimberly (KMB Quote - Cramer on KMB - Stock Picks),
General Mills (GIS Quote - Cramer on GIS - Stock Picks),
Pepsi (PEP Quote - Cramer on PEP - Stock Picks),
Clorox (CLX Quote - Cramer on CLX - Stock Picks) -- as well as the utilities that benefit --
ConEd (ED Quote - Cramer on ED - Stock Picks),
Duke Energy (DUK Quote - Cramer on DUK - Stock Picks) -- without realizing that since commodity peaked, these are the big winners, not the losers.
Cramer: Inflation's High, Time to Buy |
| |
This is a market now where you ALWAYS want to take the other side of the trade. ALWAYS.
Let 'em come in, then remember that the commodities crashed since this 17-year high and pick among ones that you shouldn't otherwise be able to buy.
At the time of publication, Cramer was long Pepsi and Procter & Gamble.
Jim Cramer
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