He said that the sky is not falling because of rising commodity prices, and smart investors can profit from them.Cramer said the moves in commodities are of self-correcting and not signs of rampant inflation. He said when grain prices soar due to weather and drought, the following year farmers buy more equipment, plant more crops and produce as much as they can to take advantage of higher prices. When oil prices are high, oil companies explore more, drill more and build more infrastructure to do the same. Even in the supermarket, Cramer said consumers will trade down to private-label brands when prices get too high. In fact, Cramer said rising commodity costs are what investors should be hoping for, as they signal a strong and growing economy. Only wage inflation and housing inflation is really bad, he said, and fortunately we have neither. That means that now is the time to buy those who benefit from high commodity prices, companies like Nucor (NUE), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, along with Union Pacific (UNP), Freeport-McMoRan (FCX) or Vale (VALE). Cramer also recommended companies that have been cutting costs, like Stanley Black & Decker (SWK), and those expanding internationally, like Eaton (ETN). Cramer also likes companies that can pass high costs to consumers, such as Polo-Ralph Lauren (RL) or those like Chipotle Mexican Grill (CMG) and Apple (AAPL), another Action Alerts PLUS name, which don't seem to be affected by commodities at all.
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