Mind you, that doesn't mean, "OK, go buy
(PG - Get Report)
." It doesn't mean that because the "what must" people buy doesn't mean the stocks making the stuff are cheap. The competition is fiercer than ever. The retailer and the consumer are squeezed and squeezing the suppliers. Think
(WMT - Get Report)
. Think private label, like
(THS - Get Report)
before you think Procter & Gamble.
Whatever the government can buy less of or pay less for it will -- the latter is a new thing when it comes to President Obama. That's why
(UNH - Get Report)
(AET - Get Report)
have been decimated and are going to get decimated again. That's why
could be in for trouble along with
(AMGN - Get Report)
and the others that have high-priced drugs that need taxpayer support. It's why I don't trust
(GD - Get Report)
Many companies make useful products, but they will not survive in their current form. Too much debt. Too little cash. We will need what
makes for sure. But the way the companies are structured, you won't benefit.
We need cars, but we just don't need
. Or at least all of them, perhaps just maybe two or three of them.
We will shop, but why must we shop at
(M - Get Report)
for that matter? We have Wal-Mart.
And, as always, think both ways. When I say I don't like a stock, you don't have to have me drill it into your head to short it. The opportunities here on the short side are much better than on the long side. Still. I don't think that will change until we repeal all of the gains since the mid-1990s.
Only then will we get to prices where selling may simply not make sense. Right now, shorting makes all too much sense, so selling will certainly make sense.
So, if you don't need stocks now, don't own them. If you can short them, short them. If you have them as part of an allocation, be defensive and diversified. But don't get your hopes up. On Thursday, with this budget, we saw the true colors of this administration.
It wants lower stock prices and less money for the wealthy.
That's never a prescription for a bull market.
At the time of publication, Cramer was long Wal-Mart