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NEW YORK (
TheStreet) -- Rumor has it the stock market is now being driven completely by rumors. At least that's what Jim Cramer heard on the Street Tuesday, he told
"Mad Money" viewers. Whether it's a Spanish bailout, European deposit insurance or air strikes against Iran, if there's a rumor about it, the markets are likely trading on it.
But Cramer called "rumor investing" totally useless, adding that it's no way for anyone to invest their money. Why? Because the truth is that no one really knows anything until it actually happens and even when it does, there's still a good chance those events won't be directly affecting the stocks in your portfolio.
That's why Cramer continues to recommend sticking with stocks that don't have anything to do with Europe, stocks like American food companies, a la
B&G Foods(BGS) or
Dr Pepper Snapple(DPS), or domestic tobacco players like
Cramer also recommended domestic housing stocks including
Lumber Liquidators(LL) and paint-maker
Sherwin-Williams(SHW) as safe bets with no European exposure. There is also the biotech sector, names like
Arena Pharmaceuticals(ARNA) and
Seattle Genetics(SGEN), both of which will continue the fight against life-threatening diseases no matter what the economies in Europe are up to.
Not everything is part of the European debacle, Cramer reminded viewers. "The sooner you realize that, the more money you'll make."
Hidden in Plain Sight
Europe's debt woes may make it harder to find strong stocks, Cramer told viewers, but that's no excuse for missing them. Case in point:
Dollar General(DG - Get Report) and
Dunkin Brands(DNKN - Get Report), two stocks that have risen 22% and 35% respectively this year, all in plain sight of savvy investors.
Cramer said there have been many times in the stock market's history where gains were only possible in a handful of sectors. There were times when only health care was making money, others when technology was the only place to be. So it should come as no surprise that in today's market, where Europe has taken the financials, industrials, energy and technology stocks off the table, stocks like Dunkin and Dollar General would be good places to invest.