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NEW YORK (TheStreet) -- Weakness in Europe is not a reason to sell, it's a reason to buy, Jim Cramer said on Mad Money Thursday after the market panicked over a failing bank in Portugal. Cramer told viewers not to fear the European bear any longer because it's no longer 2008.
Gone are the days when a failing bank in Europe is a threat to the U.S. banking system, Cramer said. Thanks to former Treasury secretary Tim Geithner and his highly successful stress tests, U.S. banks are better capitalized, have far fewer bad loans and are able to withstand whatever may be ailing Europe on any given day. That's why money has been flowing into U.S. banks, Cramer noted. The European recovery is tepid at best.
That doesn't mean the U.S. stock market doesn't have its share of problems. Cramer said retail is still spotty, with Tractor Supply (TSCO) and Lumber Liquidators (LL) the most recent casualties. Housing remains slow while hiring may still be a long way from substantial gains.
But with many U.S. stocks on a tear, Cramer said Europe just isn't a reason to sell any more. There are plenty of U.S. businesses that are doing great and today's selloff just made them even better, he concluded.
Got Dean Foods?
Milk does your body and your portfolio good, according to Cramer, looking at Dean Foods (DF - Get Report), one of our nation's largest milk producers. Cramer said the analysts are getting it wrong with Dean, and that means investors could catch big gains.
Cramer explained that everyone is expecting the worst from Dean Foods after the company's biggest cost, milk, skyrocketed 33% last year. But with the price of milk now on the decline, down 7% in June alone, Cramer said even if Dean posts on OK quarter its shares will be up big.
The analysts are simply expecting high milk prices to be the new normal, but Cramer noted that production in the U.S. is up 3%, while Europe and China are seeing even bigger gains as supply is catching up to the new demand. Also helping the equation are feed prices, which are on the decline. Cheaper feed, cheaper milk, Cramer noted.