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NEW YORK (
) -- "The stock market is irrational, inefficient and sometimes even wrong," Jim Cramer told the viewers of his
TV show Wednesday as he opined on the day's market tumble.
He said that the mechanics of the market, not the fundamentals, were once again in charge, causing some great buying opportunities.
"How can this market be so stupid," asked Cramer? He said for weeks investors have been worried that rising commodity costs will hurt companies and therefore stocks, but now when commodity prices are finally falling, stocks are trading down big time. Does it make sense? "No," says Cramer.
But what does make sense is that hedge fund speculators who have been driving up oil futures are finally being asked to put up more collateral. And since these speculators don't have any collateral, they're being forced to sell, which is driving oil, and the markets overall, into a tail spin. "The speculators are finally on the run," said Cramer, but that doesn't mean that all stocks should be sold.
Cramer said investors need only use their heads, and start buying stocks that will do well with lower gasoline and other commodity prices. Whether it be silver, corn, oil or steel, there are a lot of companies that will be rocketing higher now that input costs are coming back to earth, he said.
Among Cramer's favorites, stocks like
, but also restaurants like
, which will most certainly benefit from the coming lower gasoline prices.
"This is a great opportunity," said Cramer, use it wisely.