Skip to main content

This column was originally published on RealMoney on Sept. 7 at 8:45 a.m. EDT. It's being republished as a bonus for readers.

Oil peaked. It's OK. It's not a sin to own it; there are still dividends. There are still buybacks. There are still takeovers.

But there won't be any more outperformance.

That's what the stocks are saying.

I want to disagree with the stocks. I want to say, "Wait, you liked


(VLO) - Get Valero Energy Corporation Report

at $60, how can you hate it at $53?"

But that's not the way you look at commodity stocks. You have to look at them as peak-and-valley stocks, not stair-step stocks.



(BUD) - Get Anheuser-Busch InBev SA/NV Sponsored ADR Report

says the fall might be tough, you ride through it or you switch to a staple company where things are easy.

But with the oils, you can't say, "OK, I will sell


(OXY) - Get Occidental Petroleum Corporation Report

TheStreet Recommends

to buy


(MRO) - Get Marathon Oil Corporation (MRO) Report

." You can't because your fellow shareholders have now become your enemies, trying to exit on your back.

You can hope. You can hope for something bad happening in the world, some terrorist action. You can hope for a hurricane.

But, as I say in

Jim Cramer's Real Money: Sane Investing in an Insane World


hope is not part of the equation.

There's still time to lighten up in the oil group.

At the time of publication, Cramer was long Anheuser-Busch.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from