Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- Today's decline was just a garden variety selloff and not something to panic about, Jim Cramer told "Mad Money" viewers Thursday as he tried to put the day's big drop in the markets into context.
Cramer said it may seem counter-intuitive that cheaper gasoline, falling prices at the supermarket and record low interest rates are a bad thing, but for those who manage money that's exactly what they're thinking. To fund managers, a big decline in commodities means the world's economies are in trouble, so now's the time to sell, sell, sell.But Cramer looks at cheap gas and low commodities from the consumer's point of view, which means all of these "negatives" add up to paying less at the pump, less for food and way less on the mortgage. While, yes, there are companies such as commodity producers that are hurt by falling prices, for the vast majority of companies earnings will be stellar going forward. The markets have had a nice run to the upside, nearly in a straight line, said Cramer, so it's only natural to have a pullback from time to time, especially given that the world's leaders have done nothing to right the world's economies. He said world leaders must focus on growth or eventually earnings will begin to suffer. For the time being, however, Cramer said he's only worried about inflation, not deflation.
Sell BlockIn the "Sell Block" segment, Cramer put two diverging analysts to the test by examining the stock of Expedia (EXPE). On Tuesday, analysts at Piper Jaffray downgraded the travel and leisure giant but on Wednesday, Stifel Nicolaus used the weakness to reiterate its buy on Expedia while upping its price target for the stock. When Expedia last reported, it blew away the estimates by 10 cents a share in what was one of the best quarters in years. The company saw unique visitors rise and was on track with its technology upgrades. Analysts at Piper Jaffray upgraded Expedia on May 23 as a result of those strong results.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV